Fourth Quarter Revenue Drop for U.S. Steel by 37 Percent
In the fourth quarter U. S. Steel faced loss of $999 million and said it is facing "significant headwinds and uncertainty" for 2016.
There was also a steep drop in the revenue by 37 percent to $2.57 billion but it managed to surpass the expectations of the analysts' who forecasted $2.52 billion.
Low prices, over supply and heavy competition have hurt the Pittsburgh company along with several other domestic steel manufacturers. On Tuesday, shares of U. S. Steel climbed 12 percent during the regular hours and then dropped 8.8 percent during the late trading hours to $7.09.
If the current market conditions persist, the company expects adjusted earnings prior to income taxes, interests and depreciation to be close to the break-even point.
In November, U. S. Steel had lowered its guidance for the quarter saying that there was no improvement noted in the commercial markets which it had anticipated earlier in the second half of 2015.
U. S. Steel reported $6.83 per share or $999 million loss compared to the profit of $275 million one year ago.
Last month, U. S. Steel said the company will delay the plans of constructing an electric arc furnace at its Fairfield Works facility in Alabama due to sluggish demand from the oil-and-gas sector and also the low price of the metal.
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