PITTSBURGH, April 30, 2020 -- United States Steel Corporation (NYSE: X) announced today that its Board of Directors declared a dividend of $0.01 per share on U. S. Steel Common.
Lockdowns across the world to put a check on the spread of the coronavirus hurt global steel production in April.
Shares of Whirlpool and Clorox rise, while United States Steel falls Continue reading...
Right now, United States Steel Inc. (NYSE: X) share price is at $7.32, after a 2.14% decrease. Over the past month, the stock went up by 7.18%, but over the past year, it actually fell by 44.87%. With questionable short-term performance like this, and great long-term performance, long-term shareholders might want to start looking into the company's price-to-earnings ratio.The stock is currently higher from its 52 week low by 61.23%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with steel stocks, and capitalize on the lower share price observed over the year.The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also shows that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future.Depending on the particular phase of a business cycle, some industries will perform better than others.Compared to the aggregate P/E ratio of the 11.48 in the steel industry, United States Steel has a lower P/E ratio of 0.0. Shareholders might be inclined to think that they might perform worse than its industry peers. It's also possible that the stock is undervalued.P/E ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors may not be able to attain key insights from trailing earnings.See more from Benzinga * 8 Basic Materials Stocks Moving In Monday's Pre-Market Session * 20 Basic Materials Stocks Moving In Friday's Pre-Market Session * 6 Basic Materials Stocks Moving In Tuesday's Pre-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
U.S. Steel (X) delivered earnings and revenue surprises of 8.75% and -1.01%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Q1 2020 United States Steel Corp Earnings Call
MSCI's gauge of world stocks gained 0.4%, nearing a 2-1/2 month high. With nervous investors wary of adding to their equity holdings over concerns on what a post-lockdown world would look like, Germany's Ifo institute survey for May gave some relief. The index rebounded more than a Reuters poll expected in May, recovering from its worst decline on record in April as a reopening of Europe's largest economy boosted corporate expectations.
Lower prices and shipments hurt U.S. Steel's (X) revenues and bottom line in Q1.
The deal provides a new long-term iron ore customer to U.S. Steel's (X) Minnesota mines along with incremental volumes.
Moody's Investors Service, ("Moody's") assigned a B2 rating to United States Steel Corporations (U. S. Steel) $700 million guaranteed first lien senior secured notes. All other ratings, including the Caa1 Corporate Family Rating (CFR) were affirmed.
U.S. Steel (X) plans to employ the net proceeds from the offering to boost liquidity, strengthen balance sheet as well as for general corporate purposes.
United States Steel Corporation (NYSE:X) (the “company” or “U.S. Steel”) today announced that it has commenced, subject to market conditions, an offering of $700 million aggregate principal amount of senior secured notes due 2025 (the “notes”). The notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons unless pursuant to registration under the Securities Act, or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes are being offered only to persons reasonably believed to be “qualified institutional buyers” under Rule 144A of the Securities Act or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act.
(Bloomberg) -- One of the biggest U.S. steelmakers is signaling how the coronavirus pandemic is set to inflict pain on blue-collar America.U.S. Steel Corp. expects to lay off about 2,700 employees as the virus forces the company to idle most of its blast furnaces. Even before lockdowns hit the economy, producers were facing slowing demand in the manufacturing sector.Now, U.S. Steel’s moves further illustrate how the virus is turning President Donald Trump’s much-touted “blue-collar boom” into a bust as he heads into November’s election. Economists see an historic economic contraction in the offing and millions of jobs at risk in coming months.Pittsburgh-based U.S. Steel said in a filing Thursday that it sent out notices of plans for layoffs to 6,500 employees, but that it expects the actual number affected to be about 2,700. As of Dec. 31, the company had 27,500 people on the rolls. Meghan Cox, a company spokeswoman, said separately that the producer will lay off an additional 1,000 in Europe, accelerating the time line of previously announced reductions due to the coronavirus crisis.“It’s all about minimizing or preserving cash in a difficult environment,” said Phil Gibbs, an analyst at KeyBanc Capital Markets. “They’re a heavy fixed-cost business, and volume right now is reasonably limited and they have to take actions.”Shares of U.S. Steel lost about 33% this year through Thursday, when they closed at $7.68.Unemployment SurgesAs companies across the U.S. shut or curb operations due to government efforts to contain the spread of the virus, the total number of Americans that have filed for unemployment benefits has soared to above 30 million.While the pace of unemployment-benefits filings have decelerated in recent weeks, job losses remain far from over and employment is expected to take years to eventually recover. Plus, more layoffs could be in store as states and municipalities face severe budget crunches.U.S. Steel has now idled seven out of its 10 blast furnaces in the U.S. The facilities affected are three at the Gary Works site in Indiana, one at Granite City in Illinois, two at Great Lakes in Michigan and another at Mon Valley Works in Pennsylvania.It’s also indefinitely idling its Lone Star Tubular Operations as well as its Hughes Springs coupling production facility in Texas.Spending CutsU.S. Steel has also cut spending and increased its borrowings under a revolving credit facility. The company reported an adjusted loss of 73 cents in the first quarter, better than the 85-cent loss that analysts on average estimated.In January, the steelmaker said it “expects the first quarter of 2020 to be the trough for the year due to the normal seasonality of our mining operations and lower first quarter shipments in flat-rolled” products. That was before the pandemic upended the economy. On Friday’s quarterly earnings call with analysts, Chief Executive Officer David Burritt said the market is “in search of bottom” in the second quarter.“If this was a normal business climate, I’d say this is a death sentence, but it’s not a normal business climate,” said Dan DeMare, a regional sales manager for Heidtman Steel, a service center customer of U.S. Steel. The capacity shutdown signals that the company is “willing to give up market share to preserve their business,” he said.(Updates with with additional 1,000 layoffs in Europe in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. Steel (X) to use the net proceeds to boost liquidity, strengthen the balance sheet and for general corporate purposes.
United States Steel Corporation (NYSE:X) (the "Company" or "U. S. Steel") today announced a four-year agreement to sell substantial volumes of quality iron ore pellets to Ontario, Canada based Algoma Steel Inc. (“Algoma”). The purchase agreement, which runs from 2021 through 2024, provides incremental volume and a new long-term iron ore customer for U. S. Steel’s Minnesota mines. “As a top North American iron ore producer, U. S. Steel is pleased to partner with Algoma to ensure they have the substantial supply of iron ore pellets they need to run their business,” said U. S. Steel President and Chief Executive Officer David B. Burritt.
Weak Demand, Prices Mar Steel Producers Industry Outlook
United States Steel Corporation (NYSE: X) today announced that Duane Holloway, senior vice president, general counsel and chief ethics & compliance officer, has been recognized as “Chief Compliance Officer of the Year.” The recognition was given by Compliance Week Magazine in the organization’s inaugural Excellence in Compliance Awards. “Ethics and compliance are central to U. S. Steel’s values,” said president and chief executive officer David B. Burritt.
The steel sector is reeling from falling demand, which is expected in the coronavirus pandemic. But there is also another problem for steel producers no one saw coming: rising raw material prices.
United States Steel Corporation (NYSE:X) (the “company” or "U. S. Steel") today announced the pricing of its previously announced private offering of $1,056,357,000.00 aggregate principal amount of 12.000% Senior Secured Notes due 2025 (the "notes.") The notes will be issued at a price equal to 94.665% of their face value. This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, including the notes, nor shall it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
X earnings call for the period ending March 31, 2020.