On the campaign trail, President Donald Trump pledged to revive the U.S. steel industry. At different times last year and this year, Trump has claimed that he had managed to do just that through the imposition of tariffs on steel imports.
The reality, however, is now beginning to look different with various U.S. steel companies, chief among them the United Sates Steel Corporation providing earnings guidance for the third quarter that paint a not-so-rosy picture.
Giant Steel Producer Bleeds Heavily Pre-Hours
The market has taken notice, and second-largest U.S.-based steel producer by shipments is Thursday’s biggest pre-market loser. Of course, we’re talking about U.S. Steel Corporation (X). This follows Q3 earnings guidance by U.S. Steel that shows it will suffer losses that are bigger than had been anticipated by Wall Street. Heading into Thursday’s open, United Sates Steel Corporation fell by over 12%.
United States Steel Corporation price chart. | Source: Yahoo Finance
Specifically, the United States Steel Corporation warned that it expects its diluted loss per share to be 35 cents in the third quarter. According to MarketWatch, this was worse than analysts had been expecting. Wall Street firms that had been surveyed by FactSet had been anticipating an adjusted loss per share of 10 cents.
Layoffs, Losses and Idling at United Sates Steel Corporation
U.S. Steel blamed the loss projection on falling steel prices in its home country and deteriorating market conditions in Europe.
As a result of falling demand, the steel producer will continue idling some of its blast furnaces in the U.S. and Europe for the rest of this year. The United Sates Steel Corporation will also continue cutting costs by laying off some workers.
Just four months ago,