Steel Mills
April 27, 2017
US Steel to Accelerate Asset Optimization
Written by Sandy Williams
US Steel stunned analysts and the financial community on Tuesday/Wednesday when the company announced a large loss when the street was expecting the company to make money. During the conference call the mill advised that they essentially need to upgrade their facilities in order for the company to remain competitive. The stock price dropped 25 percent in value on Wednesday. Steel Market Update does not own or recommend any steel stocks and advises investors to reach out to their favorite analyst or consultant for investment advice.
US Steel plans to embark on an accelerated program of upgrades for its flat-rolled segment to better position the company for long-term sustainability and profit. Increased downtime is planned for the year that will reduce shipments of flat-rolled to third party customers to 10 million tons. Flat rolled shipments will be on par with volumes for 2016 and 2015, but well below previously anticipated shipments for 2017. US Steel plans to invest over $300 million in 2017 for the asset optimization plan and similar amounts over the next several years.
