United States Steel Corp. aka U.S. Steel NYSE: X produkcja stali

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U.S. Steel Drops Despite Raising Guidance

TONY OWUSUMAR 15, 2021 11:43 AM EDT
Shares of U.S. Steel (X) - Get Report were falling Monday after analysts digested the company's revised first quarter guidance, with BMO Capital analysts calling the forecast "good, but not great."

On Sunday, U.S. Steel provided an upward revision to its first quarter 2021 guidance with adjusted net earnings being recalculated to about $265 million, or $1.02 per share, up from 61 cents per share. Analysts polled by FactSet are expecting earnings of 84 cents per share.

Sunday's announcement followed a Friday statement estimating that earnings before interest, tax, depreciation and amortization would be $540 million, higher than analysts' $522.1 million estimates.

On Monday, BMO analyst David Gagliano raised his price target to $25 from $21 per share with a market perform rating as he said long lead times and lagged quarterly index prices suggest "additional significant incremental gains" in the second quarter.

Morgan Stanley's Carlos De Alba said the first-quarter guidance beat shows significant leverage in U.S. Steel's higher fixed-cost operating base, according to Bloomberg, and expects its profitability to continue to improve in the coming quarters.

De Alba maintained his equal weight rating and $24 price target, but still advises investors to "await on the sidelines for a better entry point before turning more constructive."

U.S. Steel shares were falling 8.1% to $22.22 in morning trading on Monday. They were one of the best-performing stocks last week, increasing 33.17%.

“Strong market conditions and our well-timed acquisition of Big River Steel are allowing us to drive significant earnings growth,” Chief Executive Officer David Burritt said in the statement on Sunday.

In January, U.S. Steel reported a fourth-quarter loss of 27 cents a share, bettering analysts' expectations of a 68-cent loss. Revenue of $2.56 billion came in ahead of the Zacks consensus estimate of $2.54 billion.

"We finished 2020 strong and are optimistic about the opportunity to deliver incremental value for our stakeholders in 2021," Burritt said at the time.

https://www.thestreet.com/investing/us- ... g-guidance

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U.S. Steel (X) guided slightly above Q3 views and said it plans to build a new $3 billion mill.

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U.S. Steel wspierane jest przez rynkowe trendy, które według zarządu mają trwać. Trzeci kwartał może być rekordowy. Analitycy widzą szansę na kontynuację hossy.

Amerykańska korporacja specjalizująca się w produkcji stali po ciężkim 2020 r. ponownie jest na fali ze względu na rosnący popyt i drożejący surowiec. Dzięki temu w drugim kwartale grupa wypracowała ponad 5 mld USD przychodów, w porównaniu z 2,1 mld USD w tym samym okresie rok wcześniej. Zysk EBITDA wyniósł 1,3 mld USD w porównaniu z ponad 260 mln USD straty EBITDA rok wcześniej.
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https://www.parkiet.com/Zagraniczna-Spo ... ordow.html

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Nucor (NYSE:NUE) stock fell 3.1% and United States Steel (NYSE:X) stock fell 4% after Goldman Sachs (NYSE:GS) downgraded its investment stance on both companies, to ‘neutral’ from ‘buy’, saying the price of hot-rolled coil steel has been abnormally high in 2021, but that may soon be coming to an end.

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US Steel Stock Spikes As Energy Costs Hit European Rivals; Nucor, Cleveland-Cliffs Jump
US Steel shares lead industry stocks higher Monday as surging energy prices look to blunt European production, and exports, in the months ahead.

U.S. Steel Corp (X) - Get United States Steel Corporation Report shares jumped higher Monday as investors tracked the impact of Europe's energy crunch on regional producers that could slow exports into the United States over the coming months.

Spain's Sidenor suspended production at its plant near the Basque capital of Bilbao until at least the end of the year Monday, citing a sharp rise in electricity and power prices -- triggered by a 250% year-to-date surge in natural gas -- it said made operations there financial unviable.

The move followed a warnings from Britain's industry lobby, U.K. Steel, which cautioned that "with winter approaching, demand for gas and electricity will rise, and prices could get higher, which will make it impossible to profitably make steel," leading to shutdowns and price hikes in the domestic market.

U.S. Steel shares were marked 4.9% higher in late-morning trading Monday to change hands at $21.72 each, a move that would extend their year-to-date gain to around $30%.

Nucor Corp. (NUE) - Get Nucor Corporation Report shares jumped 3.3% to $101.25 each while Cleveland-Cliffs (CLF) - Get Cleveland-Cliffs Inc Report surged 5.45% to $21.75 each.

The U.S. market remains the most attractive destination for European steel exports, despite the 25% tariff imposed by President Donald Trump in 2018. Domestic producers, such as U.S. steel, could benefit from a slowdown in European imports -- as well as the opening of markets overseas that followed the removal of steel tariff "rebalancing" measures by the European Union last spring -- if the energy crunch extends into the final months of the year.

That, in turn, could offset concerns that capacity additions -- including U.S. Steel's plans for a $3 billion mill that will start producing in 2024 -- will test the 'higher-for-longer' thesis (for broader steel prices) as the government moves to finalize its multi-trillion stimulus bill.

Overall, U.S. mills -- including U.S. Steel -- have produced 71.4 million tons of crude steel so far this year, according to data from the American Iron and Steel Institute, a 20.26% increase from the same period last year. Average capacity utilization is now at 81.1%, up from just 66.8% over the same period last year.

U.S. Steel said it expects adjusted current quarter profits of around $2 billion, a 50%-plus increase from the prior period, adding it's reduced its overall debt by around $2.7 billion so far this year, excluding that linked to its 2019 acquisition of Big River Steel.

https://www.thestreet.com/markets/us-st ... ean-rivals

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Spółki z branży stalowej notują świetne wyniki

Przemysł stalowy cieszy się bezprecedensową koniunkturą, gdyż ceny stali wzrosły w ciągu ostatniego roku niemal czterokrotnie, osiągając poziom 1900 USD za tonę. Mimo to akcje spółek stalowych są jednymi z najniżej wycenianych na rynku. Wiodące spółki, takie jak Nucor (NUE 0,25%), Cleveland-Cliffs (CLF 12,71%), United States Steel (X 3,02%) i Steel Dynamics (STLD 0,68%), są wyceniane na dwa do pięciu razy więcej niż szacowane zyski w 2021 roku. Mogą one być warte znacznie więcej w miarę wzrostu popytu na stal.

"Widzimy odrodzenie amerykańskiego przemysłu stalowego" - mówi Curt Woodworth, analityk branży stalowej w Credit Suisse. "Przemysł jest zdrowszy niż kiedykolwiek, rentowność jest na najwyższym poziomie, bilanse są w najlepszej kondycji od dłuższego czasu. Akcje są znacznie niedowartościowane". Cleveland-Cliffs spodziewa się, że w 2022 roku będzie wolny od długów, a U.S. Steel zmierza w tym kierunku. U.S. Steel ma również w pełni finansowany plan emerytalny pracowników oraz plan opieki zdrowotnej dla emerytów. Poprawiająca się kondycja finansowa branży może prowadzić do wyższych dywidend i wyższych wycen. Akcje stali są w tym roku mocno w górę, ale spadają średnio o 20% od sierpniowych maksimów. Inwestorzy obawiają się, że ceny stali załamią się w 2022 roku, gdy na rynek wejdzie nowa podaż. Chcą również, by producenci stali zwiększyli dywidendy i wykup akcji, tak jak zrobili to inni producenci surowców.

Woodworth argumentuje, że ceny utrzymają się na wyższym poziomie przez dłuższy czas, a konsensus szacunków zysków na rok 2022 jest zbyt niski. Zakłada on średnią cenę 1200 USD za tonę w 2022 r., przy czym rynek dyskontuje cenę 800 USD lub niższą. Woodworth twierdzi, że inwestorzy nie dostrzegają kilku pozytywów. Szacuje on, że w najbliższych latach wzrost popytu na stal w Stanach Zjednoczonych będzie wynosił średnio 3% do 4% rocznie. Północnoamerykańska produkcja samochodów może wzrosnąć w przyszłym roku, gdy zmniejszy się niedobór chipów. Dobrze wróży też wzrost wydatków na infrastrukturę oraz budowa odnawialnych źródeł energii elektrycznej, zwłaszcza turbin wiatrowych i związanych z nimi linii przesyłowych, które wymagają dużych nakładów stali. Amerykańscy producenci stali są najczystszymi producentami na świecie, ponieważ 70% krajowej produkcji pochodzi z minihut, które wykorzystują złom i charakteryzują się niższą emisją. Zielony odcień stali może umocnić polityczne poparcie dla obecnych ceł w wysokości 25% na wiele produktów importowanych, które stanowią około 20% rynku.

Dawniej producent rudy żelaza, Cleveland-Cliffs jest teraz głównym producentem stali, po dwóch przejęciach w zeszłym roku. Jej prezesem jest zorientowany na akcjonariuszy, urodzony w Brazylii Lourenco Goncalves, który posiada 100 mln USD jej akcji. Przy cenie około 20 dolarów, akcje Cleveland-Cliffs są notowane za 3,4-krotność prognozowanych na 2021 rok zysków w wysokości prawie 6 dolarów za akcję.

"Firma kupiła dwóch producentów stali na dnie rynku i jest rozważnym inwestorem kapitału" - mówi Michael Glick, analityk rynku stali w J.P. Morgan (JPM 1,35%). Ma on rekomendację Overweight i cenę docelową na poziomie 40 dolarów. Cleveland-Cliffs nie wypowiada się na temat zwrotów kapitałowych, ale w nadchodzącym roku możliwy jest wykup akcji i wypłata dywidendy.

U.S. Steel (X) kupił atrakcyjnego operatora minihut Big River Steel i sprzedał aktywa niezwiązane z podstawową działalnością, wykorzystując obecne zyski do zmniejszenia zadłużenia. Jednak plan wydania 3 mld USD na nową hutę nie zachwycił inwestorów, gdyż może opóźnić znaczące zwroty z kapitału. U.S. Steel jest notowany po 22 USD, czyli poniżej dwukrotności prognozowanych zysków na 2021 rok. Woodworth wyznaczył cenę docelową na poziomie 49 dolarów. Lider branży, Nucor, operator zakładów minihutniczych, był w ostatnich latach konsekwentnie rentowny. Spółka ma silny bilans z długiem netto poniżej 3 mld USD i dąży do zwrotu przynajmniej 40% zysku netto poprzez dywidendę i wykup akcji. Biorąc pod uwagę asortyment produktów, spółka powinna być beneficjentem ustawy infrastrukturalnej. Akcje, przy cenie około 100 dolarów, są wyceniane poniżej pięciokrotności tegorocznych szacunkowych zysków i przynoszą 1,6% zysku. Steel Dynamics, założona przez absolwentów Nucor, jest liderem w dziedzinie zrównoważonego rozwoju. Jej emisja gazów cieplarnianych jest o 70% niższa od średniej w branży. Akcje notowane są na poziomie 60 dolarów, czyli czterokrotność prognozowanych na 2021 rok zysków w wysokości 14 dolarów za akcję, a ich rentowność wynosi 1,7%. W trzecim kwartale spółka spodziewa się zysku na poziomie prawie 5 dolarów na akcję. Steel Dynamics powinien skorzystać na otwarciu nowej walcowni w czwartym kwartale. Glick, który przewiduje wyższą dywidendę i ma rekomendację Overweight z ceną docelową na poziomie 104 dolarów, mówi: "W zasadzie to już koniec z głównymi wydatkami kapitałowymi".

Stelco Holdings, kanadyjski producent stali, ma słabo notowane akcje amerykańskie (STZHF), które osiągają cenę około 30 USD na Pink Sheets. Firma posiada duży, zmodernizowany wielki piec na brzegu jeziora Erie, który pomógł jej stać się jednym z najtańszych producentów w Ameryce Północnej, z ceną 400 dolarów za tonę. Posiada gotówkę netto i cenionego CEO w osobie Alana Kestenbauma, który posiada 11% akcji. "Mamy niesamowitą przewagę kosztową i najwyższe marże w branży" - mówi Kestenbaum. Akcje są wyceniane na dwukrotność tegorocznych oczekiwanych zysków. Stelco odkupiło 13% swoich akcji od dużego posiadacza w sierpniu i podwoiło swoją kwartalną dywidendę do 20 kanadyjskich centów za akcję, co daje bieżącą stopę zwrotu na poziomie 2%.

https://www.paszport.ws//sp%C3%B3%C5%82 ... tne-wyniki

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(Reuters) - Producent stali United States Steel poinformował w niedzielę, że rozpoczyna formalny przegląd w celu oceny strategicznych alternatyw dla firmy.

Decyzja jest następstwem tego, że firma "otrzymała wiele niezamówionych propozycji, które wahały się od nabycia niektórych aktywów produkcyjnych do rozważenia całej firmy", powiedział dyrektor generalny David Burritt, nie ujawniając więcej szczegółów na temat strategicznych alternatyw.

U.S. Steel, który podnosi ceny, aby zrównoważyć wpływ wyższych kosztów związanych z surowcami i energią, odnotował silny popyt na swoje produkty stalowe, pomagając firmie przekroczyć szacunki zysku za drugi kwartał.

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NEW YORK (Reuters) - U.S. Steel Corp attracted acquisition interest after short-term challenges, including upgrading furnaces and potential car production shutdowns, weighed on its valuation, according to people familiar with the deliberations of its suitors.

The Pittsburgh-based company, which has a market value of $6.8 billion, is exploring its options amid acquisition offers from other industry players, including Cleveland-Cliffs (NYSE:CLF) Inc and Esmark Inc. Reuters reported on Wednesday that ArcelorMittal (NYSE:MT) SA was also studying a potential bid.

Prior to disclosing the takeover interest on Aug. 13, U.S. Steel's shares were undervalued compared to many of its major peers. The company's market value, including net debt, was equivalent to 3.6 times its projected 12-month earnings before interest, taxes, depreciation and amortization (EBITDA), compared to 5 times for Cleveland Cliffs .

Two other U.S. rivals, Nucor Corp (NYSE:NUE) and Steel Dynamics (NASDAQ:STLD) Inc, trade at 6.9 times and 5.8 times, respectively, according to Refinitiv data.

This discount, combined with a desire to grow market share and realize cost synergies, pushed Cleveland-Cliffs to approach U.S. Steel with an offer last month, and Esmark to follow suit, the sources said. These two companies' offers both value U.S. steel at 6.2 times its 2024 EBITDA, according to RBC Capital Markets analysts.

Some of the valuation discount is likely temporary and partly the result of U.S. Steel's current capital expenditure, the sources and analysts who cover the company said.

U.S. Steel has said it will spend about $2.5 billion in 2023 - about as much it posted in net earnings in 2022 - on its equipment, including replacing some of its old blast furnaces to electric arc furnaces (EAFs).

Unlike blast furnaces, EAFs do not have to be operated at constant rates, allowing them to adjust to fluctuations in steel demand. EAFs also release much less carbon dioxide than blast furnaces, reducing climate-warming emissions.

While the investment in equipment is expected to pay off long term, it has limited how much capital U.S. Steel can return to shareholders in the near term, which has been another company priority. The company has completed $1.2 billion in share buybacks in the last two years.

Also weighing on U.S. Steel are concerns about potential strikes in the auto sector, a major client. U.S. President Joe Biden called for union auto workers and Detroit's Big Three automakers this week to avert strikes with a new agreement, before their contracts expire next month.

The automotive and transportation sector represented almost a quarter of steel shipments out of U.S. Steel's North American facilities in 2022, according to the company's annual report. Cleveland-Cliffs has a similar exposure.

"U.S. auto industry strikes would impact Cliffs and U.S. Steel, as blast furnace operators, more than EAF players, hence this may have been just the opportunity for Cliffs to lob a bid for U.S. Steel," Jefferies analysts wrote in an Aug. 14 note.

MANUFACTURING RENAISSANCE

There is, however, upside in U.S. Steel that Cleveland-Cliffs and other suitors have spotted, according to the sources.

The company provides steel for renewable energy infrastructure, such as wind turbines, and so stands to benefit from the Inflation Reduction Act (IRA), which provides tax credits and other incentives for such projects, and also comes with 'buy American' provisions. U.S. Steel CEO David Burritt has praised the IRA as a major boon, calling it the "Manufacturing Renaissance Act".

The company also expects its investment in the production of electrical steel, used in applications such as electric vehicle motors and power transformers, to pay off. It forecasts a 7% compound annual growth rate just in non-grain oriented electrical steel and in motor laminate, compared with 1% for the broader steel sheet market.

The U.S. steel industry has already benefited from import tariffs imposed in 2018 under former President Donald Trump. Supply chain disruptions and rising inflation, however, have since weighed on both U.S. Steel and its peers.

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U.S. Steel says union cannot block company's sale

(Reuters) -U.S. Steel said on Thursday that its labor agreement with United Steel Workers (USW) does not afford the union the right to veto a sale of the company that may arise from its recently announced strategic review.

U.S. Steel's statement came after USW said this week it would only back Cleveland-Cliffs (NYSE:CLF) Inc as a suitor for the company. The union said that "over the years, Cliffs has shown itself to be an outstanding employer to all of its workers."

U.S. Steel, which rejected Cliffs' $7.8 billion cash-and-stock offer as inadequate, has said it is exploring "multiple unsolicited proposals". It has attracted a $7.8 billion all-cash offer from Esmark Inc and as well as potential acquisition interest from ArcelorMittal (NYSE:MT) SA.

In a regulatory filing, U.S. Steel said its agreement with the union gives the latter the right to counter with its own acquisition offer for assets covered under their bargaining agreement. If the union does not make an offer its board deems superior, U.S. Steel can sell itself to the bidder of its choosing.

USW representatives did not immediately respond to a request for comment.

The union has transferred its right to counterbid for U.S. Steel assets to Cliffs, which disclosed the arrangement on Thursday in a statement. It was not immediately clear whether this would have any impact on the outcome of the bidding process, given that Cliffs was already participating in it.

In a presentation on its website, Cliffs had said that the union's labor agreement with U.S. Steel constituted "a practical right to veto" a deal. It pointed to a requirement for the acquirer to reach a labor agreement with the union before a transaction is completed as a means for the union to stop a company sale.

Cliffs also said on Thursday it agreed to keep in place all arrangements between U.S. Steel and union workers, should its bid prevail.

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U.S. Steel, the leading American integrated steel producer, has recently updated its third-quarter earnings outlook, surpassing Wall Street analysts' consensus predictions. On Monday, the company projected adjusted net earnings to range between $1.10 and $1.15 per share, with earnings before interest, taxes, depreciation, and amortization (Ebitda) estimated at approximately $550 million. Analysts had anticipated an EPS of around $1.03 and Ebitda of nearly $523 million.

Following this announcement, U.S. Steel's stock price increased by 3.75% to $31.66 per share on Tuesday, outperforming the S&P 500 and Dow Jones Industrial Average, which fell by 0.2%. Despite this positive movement, the company's stock price has remained relatively stable since August 13th, fluctuating between approximately $30 and $32 per share.

On August 13th, U.S. Steel announced it was considering strategic alternatives for its business, a term often used to indicate the potential for a sale or significant business change. On the same day, Cleveland-Cliffs (NYSE:NYSE:CLF), another major steel corporation, proposed a cash and stock acquisition bid for U.S. Steel.

Cleveland-Cliffs' proposal consisted of $17.50 per share in cash and 1.023 shares of its own stock for each U.S. Steel share. Given that Cliffs' shares were valued at $14.20 on Tuesday afternoon, the total offer amounted to just over $32 per share, slightly exceeding U.S. Steel's current trading value by about 1.5%.

U.S. Steel declined this offer and has since received bids from other parties, including steel processor Esmark which later withdrew from the bidding process. While investors have responded positively to U.S. Steel's earnings guidance update, they are keenly awaiting more information regarding the potential sale of the company.

The company's share price, which hovers close to the value of Cleveland-Cliffs' bid, suggests that investors anticipate a likely deal that will exceed Cliffs' initial offer. Prior to the emergence of Cliffs' bid, U.S. Steel's stock was trading at less than $23 per share.

U.S. Steel's third-quarter performance has been bolstered by a resilient commercial portfolio and management actions leading to higher cost benefits. However, the company also acknowledged that its third-quarter financial results would be impacted by the United Autoworkers union strike announced earlier this month.

This strike is expected to decrease auto production and subsequently reduce demand for steel, contributing to a decline in steel prices from approximately $900 per ton to around $700 per ton. As a result, U.S. Steel's third-quarter Ebitda is projected to fall from the second quarter's reported $804 million.

More definitive news on U.S. Steel's strategic plans and financial performance is expected when the company releases its results towards October's end.

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Morgan Stanley analysts upgraded US Steel (NYSE:X) to Overweight from Equal Weight with a price target raised by $15 to $40 per share.

The analysts also introduced X stock as a new Top Pick in the firm’s mining sector research coverage, citing the expected value creation from the company's “transformational investments.”

“Our call is supported by the ongoing strategic review process to potentially sell assets/the company, which highlights the value of X's growth initiatives,” they said in a client note.

The mentioned transformation involves an expansion of the company’s Electric Arc Furnace (EAF) capabilities and the development of high-value downstream products. A key highlight of this transformation is the construction of the state-of-the-art 3.0 million tons per annum Big River 2 (BR2) mini mill, scheduled to become operational in 2024.

This way, BR2 will nearly double US Steel's EAF steelmaking capacity. Moreover, US Steel is enhancing its presence in downstream products through the construction of a 325,000-tons per-annum galvanizing line and a 200,000-ton-per-annum non-grain-oriented (NGO) electrical steel line in collaboration with BR2.

US Steel shares rose nearly 2% in early Monday trade.