U.S. Steel Stock Surges After Group Forecasts Record Q2 Profit
U.S. Steel said adjusted earnings for the three months ending in June were forecast in the region of $3.83 to $3.88 per share ..
a 14.5% increase from last year's levels that would deliver a bottom line of around $1.6 billion, well ahead of Street forecasts.
Flat-rolled segment earnings are likely to be "meaningfully higher" than last year, with around a third of its annual 9 million to 9.5 million tones of shipments linked to fixed contract steel prices.
The group's mini mill and Big River segments, which have been hit by falling steel prices, will likely deliver earnings that a flat to the first quarter, the company indicated.
“We expect to continue delivering record performance in the second quarter, with each business segment meaningfully contributing to profitability,” said CEO David Burritt.
“Our broad end market exposure keeps our business resilient with demand across a diverse customer base, including the resurging energy market."
"Our focus on strategic end markets and the continued realization of significantly increased fixed price contracts is again expected to generate another quarter of record performance,” he added.
"Our balance sheet remains strong with an overfunded pension plan and no significant debt maturities until 2029," Burritt said.
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