Wed, Jan. 27, 12:49 PM
Wed, Jan. 27, 9:22 AM
Tue, Jan. 26, 6:46 PM
- U.S. Steel (NYSE:X) -8.6% AH after reporting a $99M unadjusted Q4 loss on a 37% Y/Y drop in revenue to $2.57B, citing tough market conditions and lower average prices.
- U.S. Steel says Q4 results for its flat-rolled, tubular and European segments all declined Q/Q, offering little hope the situation would change during 2016.
- The flat-rolled segment lost $116M in FY 2015, including $88M in Q4, as flat-rolled prices fell by $30/ton in quarter because of imports the company says are dumped or subsidized; U.S. sheet mills operated at 57% of capacity during the quarter and 60% for all of last year.
- The company says it still has strong liquidity and positive cash flow despite the harsh market conditions, and that its Carnegie Way cost-cutting initiative yielded $815M in savings last year.
- Nevertheless, "at current market conditions, we would expect lower results in each of our operating segments as compared to 2015," CEO Mario Longhi says, citing lower average realized prices and volumes.
Tue, Jan. 26, 5:37 PM
Tue, Jan. 26, 4:44 PM
- U.S. Steel (NYSE:X) declares $0.05/share quarterly dividend, in line with previous.
- Forward yield 2.57%
- Payable March 10; for shareholders of record Feb. 11; ex-div Feb. 9.
Tue, Jan. 26, 4:38 PM
- U.S. Steel (NYSE:X): Q4 EPS of -$0.23 may not be comparable to consensus of -$0.83.
- Revenue of $2.57B (-36.9% Y/Y) beats by $50M.
Mon, Jan. 25, 5:35 PM
Fri, Jan. 22, 12:33 PM
- Morgan Stanley analyst Evan Kurt expects steel prices to continue to rise and average $445/ton in 2016, which he says may result in downward revisions to Wall Street estimates for U.S. Steel (X -1.2%), AK Steel (AKS -1%) and Nucor (NUE +0.2%).
- Kurt calls Steel Dynamics "the safest way to play a modest steel market recovery,” while heavily shorted names such as X and AKS could squeeze into results, "but we would sell the news."
- The firm rates STLD at Overweight with a $27 price target, while X, AKS and NUE are all rated Equal Weight with respective targets of $19, $5 and $59; Cliffs Natural Resources (CLF -7.3%), rated Underweight with a $2 target, is called a “high cost producer in an oversupplied iron ore market.”
- "No need to own coal names into the quarter,” Kurt writes, as coal market conditions have deteriorated with a warmer than normal winter leading to large build-ups of coal inventories; he downgrades Consol Energy (CNX -0.8%) and Foresight Energy (FELP +11.4%) to Equal Weight with respective $29 and $12 price target.
Wed, Jan. 20, 2:39 PM
- U.S. Steel (X -1.9%) plans to lay off as many as 679 workers at its tubular operations facility in Lone Star, Tex., according to a filing by the Texas Workforce Commission.
- The company says the cuts are intended to be temporary, but was forced ot make the move due to difficult market conditions including "fluctuating oil prices, reduced rig counts, depressed steel prices and unfairly traded imports."
- U.S. Steel is the largest private employer in rural Morris County, Tex., which has a total population of fewer than 13K people.
Tue, Jan. 12, 6:58 PM
- AK Steel (NYSE:AKS) rose 5.8% in today's trade after the Department of Commerce imposed a 7.42% preliminary countervailing duty on hot-rolled steel imports from Brazil, which benefits U.S. steel producers; however, shares are -3.8% AH.
- The DoC says it did not find substantial import subsidizations for South Korea and Turkey; Chinese exporters were removed from the hot-rolled case because of the 90% tariff on their hot-rolled sheet exports to the U.S. for the past 14 years.
- The CVD will be added to anti-dumping duties to conclude the total tariff; preliminary anti-dumping determinations will be held February 23 and March 8.
- The petition was filed by AKS, ArcelorMittal (NYSE:MT), Nucor (NYSE:NUE), Steel Dynamics (NASDAQ:STLD) and U.S. Steel (NYSE:X).
Dec. 23, 2015, 10:58 AM
- U.S. Steel (X -1.4%) and AK Steel (AKS -2.4%) are lower after preliminary anti-dumping tariffs levied on corrosion-resistant steel imports from China, India, South Korea and Italy turn out to be somewhat disappointing.
- The preliminary decision from the U.S. Department of Commerce sets duties of up to 256% on imports from China, while imports from India face duties of up to 6.9%, most Korean companies had duties set at up to 3.5%, most Italian firms had duties set at 3.1% and no tariffs were levied on Taiwan.
- AK Steel says it is pleased with the preliminary dumping margins assigned to China, but is disappointed that the dumping margins for India, Italy, Korea and Taiwan were not higher, "as they do not appear to adequately address the dumping that we believe is occurring in the U.S. market."
- BofA Merrill says the 256% tariff levied on China may grab headlines but already was expected, while the other levies mean those countries will be able to keep shipping to the U.S. "without much pain."
- Also: STLD +2%, NUE -0.2%, WOR +0.2%.
Dec. 22, 2015, 7:47 AM
- U.S. Steel (NYSE:X) says it is postponing plans to build a steelmaking furnace at its Fairfield Works operation in Alabama until market conditions improve, citing weak demand from the oil and gas sector and low steel prices.
- U.S. Steel had said it would spend $230M on the electric arc furnace at its Birmingham, Ala., mill.
- The company says it will continue to operate the Fairfield pipe mill, its steelmaking plants in Indiana, Michigan and Pennsylvania and some other operations.
Dec. 21, 2015, 7:48 AM
- U.S. Steel (NYSE:X) on Saturday night announced a tentative agreement with the United Steelworkers union on a successor three-year collective bargaining agreement covering ~18K employees at its domestic flat-rolled and iron ore mining facilities as well as tubular operations in Fairfield, Ala., Lorain, Ohio and Lone Star, Tex.
- Details were not released pending ratification by members of more than two dozen locals unions at the facilities; the deal will not be finalized until late January, at the earliest.
- Contentious negotiations at Allegheny Technologies (NYSE:ATI) and the U.S. operations of ArcelorMittal (NYSE:MT) remain bogged down.
- The U.S. steel belt is suffering through its worst market since 2009, brought on by rising Asian imports and the collapse of oil and gas markets, which has damped demand for pipes and tubes; steel prices are down by more than 40% YTD, and share prices for steel companies are down by even more.
Dec. 17, 2015, 11:42 AM
- U.S. Steel (X -8.9%), AK Steel (AKS -6.8%), Cliffs Natural Resources (CLF -8.7%) and Foresight Energy (FELP -3.6%) are all downgraded to Sell from Hold at Deutsche Bank, which says balance sheets in the segment have reached distressed levels amid constrained cash flows in the weak commodity price environment.
- Necessary capacity cuts could be slow in coming due to the "momentum and magnitude of new projects still ramping, natural currency hedges in a number of producing countries, continued cost-cutting, barriers to exit and social goals such as maintaining employment in countries such as China," the firm writes.
- In cutting its price target for AKS to $1 from $3, Deutsche Bank says it expects free cash flow to remain constrained for another two years, with the company forced to draw down on its revolver ($748M as of Q3) to fund part of its capex and interest expenses.
Dec. 10, 2015, 3:24 PM
- Steel prices in the U.S. have dropped so much that imports are finally declining, providing some relief for shares of downtrodden U.S. Steel (X +12.8%) and others in a year that has been one of the worst in decades.
- While steel prices have plunged 41% Y/Y, mill capacity utilization rose 2.8 percentage points last week in the first uptick since September, and steel imports have been lower than a year ago in each of the six months through October, the most recent month of available U.S. Census Bureau data.
- At the same time, China said yesterday it would cut some import and export taxes next year, raising concerns that cheaper Chinese products could exacerbate a global oversupply of basic materials such as steel and chemicals.
- Also today: ATI +14%, AKS +6.2%, NUE +2.5%, WOR +3.6%, STLD +5.5%, RS +2.8%, MT +4.6%.
- Earlier: U.S. Steel oversold as December marks steel price bottom, analyst says (Dec. 9)
Dec. 9, 2015, 3:22 PM
- Steel prices have bottomed in December, and steel companies could see upside potential over the next few months as major trade case decisions are released, Rosenblatt says.
- The firm remains Neutral on U.S. Steel (X +8.9%) but says it came away from recent discussions with the company and separate North American channel analysis with a less negative view, with potential positive catalysts on the horizon which could reduce selling pressures on the shares.
- Nevertheless, Rosenblatt says near-term data on the domestic steel and tubular segments remains challenging, and expects U.S. Steel's Q4 EPS results and FY 2016 EBITDA guidance to reflect aggressive demand/supply pressures.
- Also: MT +2.3%, AKS +7%, NUE +1.4%, TX +2.7%, CLF +0.9%, WOR -0.5%.
United States Steel Corp. is an integrated steel producer of flat-rolled and tubular products with production operations in North America and Europe. It operates through the following segments: Flat-Rolled Products, U.S. Steel Europe and Tubular Products. The Flat-Rolled Products segment is... More
Sector: Industrial Goods
Industry: Metal Fabrication
Country: United States
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