U.S. Steel Foresees Continued Improvement in Results of Flat-Rolled Segment

SEATTLE (Scrap Monster): U.S. Steel- the Pittsburgh-based leading steelmaker announced results for second quarter of 2018. The company reported net earnings of $214 million or $1.20 per diluted share. This is significantly higher when compared with the profit of $18 million in the first quarter. However, the Q2 2018 earnings were down significantly from $261 million during the corresponding quarter in 2017. The company reported adjusted net earnings of $262 million or $1.46 per diluted share.

David B. Burritt, President and Chief Executive Officer, U.S. Steel noted that the employees delivered superior performance levels by responding quickly to varying customer demands. It recorded significant progress in the ramp-up of Granite City steelworks, restarting steel production ahead of schedule and achieving shipments at a faster-than expected rate. The robust shipping towards late June this year played a key role in boosting the quarterly earnings, Burritt added.

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Outlining the guidance for 2018, the success of its $2 billion asset revitalization program as well as the market leadership position has prompted the company to think about future investments that are likely to drive long-term profitable growth, the company press release said. U.S. Steel increased its full-year 2018 adjusted EBITDA guidance to approximately $1.85-$1.90 billion, mainly on the back of excellent year-to-date performance. The Q3 2018 adjusted EBITDA is likely to be around $525 million.

U.S. Steel foresees continued improvement in results of flat-rolled segment, aided by increase in index prices in Q2. The improved selling prices are likely to deliver positive results for Tubular segment. Seasonal weak demand pattern coupled with planned outages may lead to subdued performance by the European segment.