iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,414 Blog Posts

U.S. Steel Ravaged in After Hours Trade After Reporting Earnings Shortfall

Trump has failed the steel workers of America. The fundamentals have not caught up with the sentiment behind this trade. This much is obvious. Going forward, however, buying this dip might prove to be opportunistic.

Reports Q1 (Mar) loss of $0.83 per share, excluding non-recurring items, $1.18 worse than the Capital IQ Consensus of $0.35; revenues rose 16.4% year/year to $2.73 bln vs the $2.91 bln Capital IQ Consensus.

First quarter results for our Flat-Rolled segment declined significantly compared with the fourth quarter, as we expected, primarily due to higher raw material costs, increased planned outage costs, seasonally lower results from our mining operations, and restart costs associated with the Granite City hot strip mill and our Keetac iron ore mine.

Change in Accounting Estimate — Capitalization and Depreciation Method
During the first quarter of 2017, we completed a review of our accounting policy for property, plant and equipment depreciated on a group basis. As a result of this review, we changed our accounting method for property, plant and equipment from the group method of depreciation to the unitary method of depreciation, effective as of January 1, 2017.

2017 Outlook

“Market conditions have continued to improve, and we will realize greater benefits as these improved conditions are recognized more fully in our future results.

We issued equity last August to give us the financial strength and liquidity to position us to establish an asset revitalization plan large enough to resolve our issues, and to see that plan through to completion. As we get deeper into our asset revitalization efforts, we are seeing opportunities for greater efficiency in implementing our plan. We believe we can create more long-term and sustainable value by moving faster now.

2017 net earnings of approximately $260 million, or $1.50 per share (Capital IQ consensus $2.83), and adjusted EBITDA of approximately $1.1 billion;
Results for our Flat-Rolled, European, and Tubular segments to be higher than 2016; Other Businesses to be comparable to 2016 and approximately $50 million of postretirement benefit expense.

Shares are off by 14% in the after hours.

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11 comments

  1. stocksnblondes

    I gave up on trading commodity plays a while ago (save gold). You can catch some short-term runs here and there, but in the end, our new world of excess capital and easy money means the favorable supply/demand dynamics for these players is more short-lived than ever.

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  2. sarcrilege

    Yeah, Trump should slap punishing tariffs on imported steel to make US steel workers even more inefficient by fattening up the marxist-bolshevik pinko commie steel worker union lobby while the rest of americans pick-up the tab.

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    • ironbird

      What the fuck do you believe in? Without a doubt some kind of fantasy land where bags of old dimes make the slave labor of America wipe the ass. Fuck Globalism. Yeah go ahead explain how that makes no sense.

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      • sarcrilege

        SUN is an unwelcome competition since I have a monopoly on candles and I will sell you one candle for $100 (at today’s prices) once I get Trump block sunlight shining on you every day.

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        • ironbird

          Indeed. That is obviously correct. But blaming the game always leads to blaming the players not the rulers. Sometime wonder if books are the problem. Try and puppet master those that do not listen or “read”. Good luck with that.

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      • thinair

        I would pay 100k to be in a steel cage with with ironturd for 30 mintues.

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  3. moosh

    Debate of the week in the making…stay tuned

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    • ironbird

      Dude ‘The Son’. Decent new show. Has potential with the Comanche Moon angle. Story of Texas was pretty bad ass on both sides.

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  4. john_galt

    not just the sreel workers

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