US Steel Declares Revised Guidance for Full-Year 2018

SEATTLE (Scrap Monster): Pittsburgh-based leading steelmaker United States Steel Corporation (US Steel) has provided updated guidance for full-year 2018, further to taking into consideration, the market dynamics after the imposition of 25% tariff by Trump administration on imported steel from other countries. The revised guidance for the current year is also on account of the planned restart of one of the two blast furnaces at the Granite City Works steel making plant complex.

The impacts of tariff imposition on domestic US markets will become clearer over the next several months. This may possibly have an impact on the company’s overall results. Upon restart of operations of the furnace at Granite City, which is expected to take at least four months, the company expects incremental shipments of approximately 100,000 tons per month. This will get reflected in the company’s financial results during H2 2018.

ALSO READ: Steel Import Tariffs Applauded by Steel, Aluminum Majors

US Steel foresees an EBITDA of nearly $250 million during the first quarter of 2018. Based on the effects of imposition of steel tariffs, proposed huge investment in capital projects and the higher shipments from Granite City Works, the company has projected net earnings of $885 million for 2018, considerably higher when compared with its earlier guidance of $685 million provided during early-February this year. The full-year 2018 EBITDA guidance too has been raised to approximately $1.7 billion, up from its earlier forecast of around $1.5 billion.

Based on hopes of demand surge for domestic steel, the company had last week decided to restart one of the idled blast furnaces at its Granite City Steel Complex, making the way for at least 500 workers return back to work. US Steel had idled both furnaces and steel making facilities in December 2015. The two furnaces together have a production capacity of nearly 2.8 million tons of steel per annum.