U.S. Steel Cuts Annual View, Posts Third-Quarter Profit
November 01 2016 - 7:00PM
Dow Jones News
U.S. Steel Corp. lowered its full-year guidance as it continues
to recover from unplanned outages in the third quarter and invest
in additional maintenance spending.
Under current market conditions, the steelmaker expects a 2016
loss of about $355 million, or $2.26 a share. In July, the company
had projected annual earnings of about 34 cents a share.
U.S. Steel said operational issues remain a headwind. In
addition, the company said it has identified assets that require
more investment and increased maintenance spending. U.S. Steel said
it would use its cash to expedite "the revitalization of our
facilities and to fund additional growth projects."
For the year, U.S. Steel expects about $475 million in adjusted
earnings before interest, taxes, depreciation and amortization,
compared with July guidance of about $850 million.
In after-hours trading, U.S. Steel shares fell 7% to $17.40.
Meanwhile, for the third quarter, U.S. Steel posted a profit but
faced "some operational challenges that limited our ability to
realize the full benefits of an improved pricing environment."
The company earned $51 million, or 32 cents a share, compared
with a loss of $173 million, or $1.18 a share, a year earlier.
Sales fell 5.1% to $2.69 billion.
Earnings excluding items were 40 cents a share. Analysts polled
by Thomson Reuters projected earnings excluding items of 80 cents a
share on revenue of $2.82 billion.
U.S. Steel said its flat-rolled segment showed improvement in
spot and contract prices, while prices also improved at its
European business. At its tubular segment, results were better than
the second quarter but reflected the challenges of low utilization
rates.
U.S. Steel also announced an agreement with the expected buyer
of U.S. Steel Canada, which filed for bankruptcy protection in
September 2014.
If the agreement with Bedrock Industries Group LLC receives
court approval, U.S. Steel Corp. would receive about $126 million
in satisfaction of its claims and would provide shared services to
U.S. Steel Canada.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
November 01, 2016 18:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
US Steel (NYSE:X)
Historical Stock Chart
From Mar 2024 to Apr 2024
US Steel (NYSE:X)
Historical Stock Chart
From Apr 2023 to Apr 2024