real-time news and commentary for investors
Monday, Oct 21
Investors keep faith in U.S. Steel, new CEO despite $1.8B writedown
- The market is showing little response to U.S. Steel's (X -0.2%) surprising $1.8B writedown, a big sum for a company with a total market cap of ~$3.5B.
- Analysts think the writedown suggests the company thinks rising costs could be a problem and that its auto and energy customers are going to pay lower prices, squeezing profits.
- The news also is a sign X is willing to take some short-term hits for its long-term health, in keeping with new CEO Mario Longhi's cost-cutting program; the market is impressed with the new man, and U.S. Steel’s stock price has jumped more than 30% since he took over in early September.