U.S. Steel’s Q1 2017 Earnings Preview: Improved Business Conditions To Translate Into Earnings Growth

April 25th, 2017 by Trefis Team
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United States Steel

U.S. Steel will release its Q1 2017 earnings result and conduct a conference call with analysts on April 26. [1] We expect the company to report a significant improvement in its Q1 earnings as a result of better business conditions for steel companies in the U.S.

The domestic steel industry has suffered as a result of competition from unfairly traded steel imports over the past few years. However, U.S. trade authorities imposed antidumping duties on steel imports from a number of countries such as South Korea and China over the course of last year. As a result, competition from these steel imports is likely to dissipate this year, allowing for both pricing and shipment growth for domestic steelmakers. In addition, the federal government’s proposed $1 trillion overhaul of domestic infrastructure will support growth in the company’s shipments over the coming years. [2] Besides an improved business environment, U.S. Steel’s ongoing cost reduction and productivity enhancement initiative, the Carnegie Way, will also help prop up the company’s bottom line. The following tables summarize our expectations from U.S. Steel’s Q1 results.

X Q1 2017 Earnings Preview

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Have more questions about U.S. Steel? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for U.S. Steel

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Notes:
  1. Quarterly Earnings Call & Webcast, U.S. Steel Website [↩]
  2. States Send Trump Lists for Promised Roads-and-Bridges Plan, Bloomberg [↩]