U.S. Steel to Miss Earnings Expectation By a Mile

SEATTLE (Scrap Monster): Pittsburgh-based U.S. Steel Corporation (U.S. Steel) has warned on their outlook. The steelmaker is likely to miss analysts’ expectations on its earnings for the third quarter of the year. U.S. Steel is the third company to report wider than anticipated losses, after the subdued guidance announced last week by Nucor Corporation and Steel Dynamics Inc.

According to company press release, it expects the Q3 ’19 adjusted EBITDA to total around $115 million. This is after excluding nearly $53 million of estimated impacts for the quarter, on account of fire at its Clairton Plant and restructuring charges. U.S. Steel expects the adjusted diluted loss per share to be approximately ($0.35).

Based on the current assessment of its Flat Rolled segment, the company suggests that two blast furnaces are likely to remain idle for the rest of the year. The continued idling of the furnaces coupled with current demand forecasts suggest that the company’s full-year flat-rolled shipments to third party customers are likely to total around 10.7 million tons, noted the press release.

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The currently idled furnace in Central European region is unlikely to restart this year. Consequently, the full-year steel shipments from the region are expected to remain subdued at around 3.6 million tons.

Moreover, negative market conditions and high import levels are likely to keep the Tubular segment under pressure during the remainder of the year.