US Steel expects to report net loss in Q4

Thursday, 17 December 2020 01:52:19 (GMT+3)   |   San Diego

US Steel Corporation today provided fourth quarter 2020 guidance. Fourth quarter 2020 adjusted EBITDA is expected to be approximately $55 million, and the company expects fourth quarter 2020 adjusted diluted loss per share to be approximately ($0.85).

"Flat-rolled customer demand in the US and Europe has improved throughout the fourth quarter, fueled by consumer-driven end-markets such as automotive, appliance, and packaging," commented U. S. Steel President and Chief Executive Officer David B. Burritt. "December’s performance has been particularly strong driven by the flow-through of higher steel prices, more nimble operations, and a continued focus on cost management. As a result, we have line of sight to significantly improved financial performance in 2021. Longer lead times, higher utilization rates, and higher input costs reflect current healthy steel demand and make us optimistic about the sustainability of today’s market environment."

In a press release, the company said its flat-rolled segment is expected to generate positive EBITDA in the fourth quarter. The company’s order book remains strong across key strategic markets and higher steel prices are being more fully reflected in its adjustable contract business, the company said. This market backdrop informed US Steel’s decision to restart blast furnace #4 at Gary Works and iron ore production at the Keetac mine to ensure it continues to satisfy strong customer demand.

In the tubular segment, customer activity remains range bound, US Steel said. Higher rig counts are not yet resulting in higher shipments as distributors manage inventories into year-end, and the company said it is focused on what it can control, including the start-up of its electric arc furnace (EAF) at Tubular where the company produced first rounds for seamless pipe production at the end of October.

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