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Largest US steel company to lose $ 100 million in Q3

Ukraine / North America / Business and Finance

US Steel expects to lose more than $ 100 million in baseline profits in the third quarter after the US business and steel industry has been hit hard by the coronavirus pandemic.

Largest US steel company to lose $ 100 million in Q3

The Pittsburgh-based steel company, one of the largest employers in Northwest Indiana, has warned shareholders that it will lose $ 1.45 per share on a quarterly basis. Nevertheless, US Steel management is confident that by the end of the year it will catch up with lost profits due to the pandemic and return to profitability.

“The improvement in market conditions seen in June and July accelerated in August and September. Strengthening steel fundamentals and our ability to respond quickly to growing consumer demand are expected to lead to a significant improvement in Adjusted EBITDA in the third quarter, ”said US Steel President and Chief Executive Officer David B. Berritt.

US Steel is reasonably confident that the steel market is turning from a low this spring to begin debt repayment in the third quarter.

“Our strong Q2 capital market performance, coupled with our optimism about the ongoing recovery, gives us confidence that we can repay some of our ABL US loans in September,” Berritt said.

Despite growing volumes, the steel company continues to pursue its diversification strategy outside of its integrated steel mills such as Gary Works.

“Our priorities remain unchanged even as market conditions improve,” Burritt said. “We remain focused on strengthening the balance sheet by focusing on today's market and improving the company's position to invest in recovery. This includes our intention to acquire the remaining stake in Big River Steel. ”

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