Steel Mills
US Steel Mitigates Losses in Q3
Written by Sandy Williams
November 3, 2015
US Steel Corp. reported a net loss of $173 million for third quarter 2015. Results included a $53 million loss due to shutdown of the blast furnace and associated operations at Fairfield Works. It also included a charge of $10 million for pension obligations to US Steel Canada and $7 million in restructuring costs.
In comparison, the company posted a net loss of $207 million in Q3 2014 and $261 million in Q2 2015. US Steel attributed Carnegie Way savings for mitigating losses.
Third quarter net sales totaled $2.8 billion compared to $4.6 billion a year ago, and $2.9 billion in second quarter. Total steel shipments were 3.85 million tons, down nearly 25 percent from 2014. Shipments of flat-rolled steel from U.S. facilities totaled 2.67 million tons.
Raw steel production in the U.S. was 3.24 million tons, up from 2.8 million tons in Q2 but down from 4.68 million tons in Q3 2014. US facilities operated at 66 percent capacity, improved from 58 percent in Q2, but well below the 86 percent level in 2014. In contrast, US Steel Europe was at 90 percent capacity in Q3 2015.
Commenting on results, US Steel President and Chief Executive Officer Mario Longhi said, “Total segment EBIT improved as compared to the second quarter as we continued to take action to address our cost structure. We remain focused on our Carnegie Way transformation efforts to weather the continued difficult market environment. These efforts will better position our Company to generate stronger operating margins and respond to changing market conditions.”
Flat-rolled pricing decreased in third quarter by approximately $20 per ton to an average of $674 per ton. Dumped and/or subsidized flat-rolled imports kept negative pressure on pricing, averaging more than one million tons per month in third quarter.
The tubular segment loss of $50 million was an improvement from $66 million in second quarter due to focus on reducing operating costs. Low energy prices, high import levels of tubular products, and reduced drilling activity adversely impacted the segment.
In the outlook for 2015, US Steel expects significantly lower shipments and average realized prices than previously projected for the year. Adjusted EBITDA is forecast to be approximately $225 million for FY 2015.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).