U.S. Steel’s Q2 2016 Earnings Preview: Improved Business Conditions In The U.S. And Cost Reduction Initiatives To Prop Up Results
We expect U.S. Steel to report an improvement in its Q2 2016 results as compared to last year with the company’s net loss likely to narrow. Regulatory intervention in the form of the imposition of preliminary antidumping duties by the Department Of Commerce on steel imports from a number of countries to the U.S., in response to a petition by domestic steelmakers, has boosted the prospects of the domestic steel industry, prompting us to revise our forecasts for U.S. Steel’s Flat-rolled division. Moreover, The Carnegie Way, which is U.S. Steel’s ongoing company-wide initiative to reduce costs and improve operational efficiency, is expected to boost the company’s margins to the tune of $600 million this year and help prop up the company’s profits. However, a sharp decline in oil and gas drilling activity as a result of the decline in oil prices over the course of the last year will negatively impact the fortunes of the company’s U.S. Tubular division, which produces steels used in oil and gas drilling.
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- Will U.S. Steel Stock Continue To Outperform Despite Economic Headwinds?
- Is U.S. Steel Set For Tough Q3 Results?
- Why We Are Cutting Our Price Estimate For U.S. Steel Stock
- How Will U.S. Steel Stock Fare In An Uncertain Economy?
Have more questions about U.S. Steel? See the links below.
- What Is U.S. Steel’s Revenue And EBITDA Breakdown?
- What Is U.S. Steel’s Fundamental Value Based On Expected 2015 Results?
- How Has U.S. Steel’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did U.S. Steel’s Revenue & EBITDA Change In The Last 5 Years?
- By What Percentage Can U.S. Steel’s Revenue & EBITDA Grow In The Next 3 Years?
- How Has The Increase In Steel Imports To The U.S. Impacted U.S. Steel’s U.S. Flat-Rolled Steel Operations?
- How Has The Decline In Oil Prices Impacted U.S. Steel’s Tubular Steel Shipments?
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