U.S. Steel’s Q3 2016 Earnings Preview: Cost Reduction Initiatives And Weakening Competition From Imports To Translate Into Improved Results
We expect U.S. Steel to report a significant improvement in its Q3 earnings results, as the impact of the company’s ongoing cost reduction initiative, The Carnegie Way, and improved business conditions in the U.S. post regulatory intervention against steel imports, are likely to translate into higher earnings. In the first week of August, the U.S. Department Of Commerce issued final orders for the imposition of antidumping duties on steel imports from a number of countries that were allegedly being sold below market prices. With the imposition of antidumping duties on these steel imports, the competition from them is likely to dissipate, resulting in an improvement in the business prospects of the U.S. Flat-rolled division in terms of improved shipments and realized prices. However, both the division’s shipments and realized prices for the full year 2016 are still likely to be lower than the previous year due to the impact of competition from steel imports in the first half of the year. In addition, subdued drilling activity amid a weak oil pricing environment is expected to weigh on the prospects of the U.S. Tubular Steel division, which produces steels used in oil and gas drilling. The following tables summarize our expectations for U.S. Steel’s Q3 2016 results.
- Can U.S. Steel Stock Return To Pre-Inflation Shock Highs?
- What’s Happening With U.S. Steel Stock?
- 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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