U.S. Steel projects it will turn a profit of $265 million or $1.02 a share in the first quarter of 2021.
The Pittsburgh-based steelmaker, which developed the city of Gary and a company town in 1906 and has been forging steel along the lakeshore ever since, expects to pull in $540 million in Earnings Before Interest, Taxes, Depreciation, and Amortization.
“Strong market conditions and our well-timed acquisition of Big River Steel are allowing us to drive significant earnings growth,” U. S. Steel President and Chief Executive Officer David B. Burritt said. “Healthy flat-rolled customer demand across most end-markets and the flow-through of higher steel prices are resulting in substantially higher results from our Flat-rolled and U. S. Steel Europe segments and our newly formed ‘Mini Mill’ segment, which will showcase the performance of Big River Steel. Solid market fundamentals, low steel supply chain inventories, continued consumer-driven demand, and pent-up infrastructure demand has us increasingly bullish. The continued execution of our customer-centric Best of BothSM strategy positions us with more diversified operations, an enhanced balance sheet, and the ability to capitalize on a ‘stronger for longer’ market environment.”
With improved market conditions and higher prices, U.S. Steel said its flat-rolled segment is expected to generate substantially more revenue this year. The increased steel prices that followed the latest wave of industry consolidation last year have been flowing through to annual contracts, locking in more income. And the steelmaker said the restart of the No. 4 blast furnace at Gary Works has boosted operating efficiency, ensuring it can capitalize off the rise in prices – which had been a problem due to deferred maintenance under the last CEO's much-maligned Carnegie Way plan.
Source : https://www.nwitimes.com/business/local