U.S. Steel Counts on Outperformance by Flat-Rolled Segment

SEATTLE (Scrap Monster): Pittsburgh, Pa.- headquartered United States Steel Corporation (U.S. Steel) issued guidance for third quarter 2019. The guidance was rated by analyst community as less bad than feared. The company is due to report its final third quarter 2019 financial results on October 31, 2019.

The company said it expects the net loss during the quarter to range from $94 million to $84 million or 55 cents to 49 cents per diluted share. The adjusted net loss is expected to range between $45 million and $35 million or 26 cents and 20 cents per diluted share in third quarter 2019.

The adjusted EBITDA is likely to range from $134 million to $144 million. This is after excluding the $9 million estimated impact from fire incident at Clairton coke facility in end-2018. It also excludes nearly $54 million of estimated restructuring charges for the quarter, the company press release said.

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U.S. Steel expects the Q3 2019 total net sales to range between $3.040 billion and $3.075 billion. The preliminary operating cash flow is expected to range from $21 million to $31 million. Also, capital expenditures during the quarter are likely to be in a range $350 million-$360 million.

Robust shipments, outperformance by flat-rolled segment and contingency gain resulting from the bankruptcy of a supplier helped the company deliver better-than-expected results, U.S. Steel noted.