“We finished 2017 in a good position. Our earnings have improved, our facilities are operating better, and market conditions are supportive of continuing improvement,” said U. S. Steel president and chief executive David Burritt, speaking during a conference call Thursday to discuss quarterly results.  

For the year ending 31 December, the company posted net sales of US$12.3 billion, up 19% from US$10.3 billion in the prior year. Earnings swung from a loss of US$440 million in 2016. 

On the quarter, the company recorded earnings of US$159 million on net sales of US$3.1 billion. In the same quarter last year, it recorded a loss of US$105 million on sales of US$2.7 billion.  

During the year, the company progressed on its US$2 billion asset revitalization program, through which it is refreshing and upgrading equipment in its flat-rolled division. This year, U. S. Steel said it expects to spend between US$275 million and US$325 million on a wide variety of projects. 

The amount is less than it previously had indicated, but Burritt said the company has had to reschedule some projects owing to increased demand from customers.  

“This … does not reflect a slowdown in our commitment to raise our assets to a higher standard and deliver strong returns on our investment,” he said. 

Also during the call, Burritt was asked about the degree to which the company expects sales and shipments of its third-generation of advanced steels to contribute to results. 

Burritt said that at present, third-generation steels account for a small portion of volumes. But he stressed that that will change in the time ahead. 

“(Third-generation steel) is the key to the kingdom for us,” he said. “This is our future in North American flat rolled.”