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Steel News September 21, 2020 08:50:36 PM

Top U.S. Steelmaker Foresees Adjusted EBITDA Loss of $100M in Third Quarter

Paul Ploumis
ScrapMonster Author
The recovery seen in North America and Europe is enduring.
Top U.S. Steelmaker Foresees Adjusted EBITDA Loss of $100M in Third Quarter

SEATTLE (Scrap Monster): The Pittsburgh-headquartered integrated steelmaker United States Steel Corporation (U.S. Steel) announced guidance for third quarter of the current year. The company foresees adjusted EBITDA loss of $100 million in Q3 2020. The adjusted diluted loss per share is expected to be approximately $1.45.

David B. Burritt, President and Chief Executive Officer, U.S. Steel stated that the improving market conditions witnessed in June and July have accelerated further during August and September. The ongoing efforts to strengthen steel fundamentals and the company’s ability to respond quickly to boosted customer demand are likely to deliver improved adjusted EBITDA in Q3 this year, Burritt added.

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The recovery seen in North America and Europe is enduring. The pace of market recovery in Europe exceeded the company’s expectations and is expected to continue further. Consequently, the third quarter results are expected to be better than the prior quarter. Although flat-rolled segment results are expected to be negative during the quarter, they are likely to be better than the previous quarter.

It must be noted that the company has restarted three blast furnaces that were temporarily idled earlier this year. The other two idled blast furnaces are expected to remain so through year-end.