Steel Mills
June 18, 2020
Loss Deepens for U.S. Steel in Q2
Written by Sandy Williams
U.S. Steel anticipates the second quarter will “mark the trough for the year.” In earnings guidance issued on June 17, the company said it expects an adjusted EBITDA loss of $315 million, exclusive of approximately $100 million of estimated restructuring and other charges. The guidance was significantly lower than analyst consensus and nearly five times the $64 million EBITDA loss incurred during the first quarter of 2020.
“As expected, the second quarter is being significantly impacted by the effects of COVID-19 and the expected nonrecurring costs associated with a significant portion of our steelmaking operations being idled in the quarter. As we mentioned on our first-quarter earnings call, we expect the second quarter to mark the trough for the year,” commented U.S. Steel President and CEO David Burritt.
