U.S. Steel (X, Financial) recently announced its latest earnings guidance, predicting a loss for the fourth quarter. This news led to a more than 5% drop in its stock during after-hours trading. The company expects an adjusted loss per share between $0.29 and $0.25, contrasting with analysts' average expectation of a $0.16 profit per share.
U.S. Steel anticipates adjusted core earnings of approximately $150 million, falling short of the previous forecast of $225 million to $275 million and below Wall Street's average estimate of $261.7 million. CEO David Burritt highlighted ongoing low steel prices and costs associated with the Big River 2 (BR2) plant expansion as significant pressures this quarter.
Steel prices have dropped 40% this year due to declining demand across sectors like construction and appliances. The company also noted weak demand and pricing in Europe. To meet production needs after a fire incident, U.S. Steel temporarily operated three blast furnaces starting December 7, planning to return two to service by January.
