US Steel Corp. expects first-quarter earnings below analyst forecasts after softer demand for the metal pushed prices down from last year's highs.
The Pittsburgh-based company forecast adjusted earnings per share of $2.96 to $3 per share, $3.77 below the Bloomberg analyst consensus estimate. Average prices for steel so far this quarter have dropped more than 30% compared to the last three months of the year, pushing US mills' earnings down.
“At the beginning of the year, we reported expected market softness for the first quarter with normal seasonal effects related to our mining operations,” said David Burritt, Chief Executive Officer. “We expect the improved market conditions to continue into the second quarter.”
The announcement comes after rival Nucor Corp., the largest US producer, also gave a weaker-than-expected earnings outlook by cutting profits from its steel mill production. The first quarter of the year is generally slower for steel companies as construction doesn't start to recover until spring.
Shares fell as much as 5.6% in trading after normal trading hours and fell 3.8% at 16:36.
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