|Bid||0.00 x 900|
|Ask||27.85 x 900|
|Day's range||27.33 - 28.06|
|52-week range||24.84 - 47.64|
|Beta (3Y monthly)||4.04|
|PE ratio (TTM)||9.16|
|Earnings date||29 Jan 2019 - 4 Feb 2019|
|Forward dividend & yield||0.20 (0.72%)|
|1y target est||39.33|
Tariffs seem to have the intended effect in the U.S. steel market, which is making life easier for the industry and leading to notable changes.
Earlier this year, President Trump imposed a 10% tariff on aluminum imports and a 25% tariff on steel imports. The tariffs were imposed under the little-used Section 232 of the Trade Expansion Act of 1962. The Department of Commerce’s investigation found that steel and aluminum imports are a threat to US national security.
As noted in the previous articles, US steel companies’ earnings have improved this year after Section 232 tariffs lifted US steel prices. In this article, we’ll see what companies are doing with their bumper earnings.
In this part, we’ll discuss steel companies’ third-quarter free cash flows. Free cash flow is operating cash flow minus capital expenditure. U.S. Steel (X) generated free cash flows of $164 million in the third quarter as compared to $219 million in the second quarter and $128 million in the third quarter of 2017.
In the previous article, we looked at steel companies’ third-quarter earnings and noted that steel companies posted record or near record earnings in the quarter. In this article, we’ll look at steel companies’ fourth-quarter guidance.
The Fed has raised rates three times in 2018. The Fed appears to be on track to raise rates for the fourth time next month. On multiple occasions, President Trump has spoken against the Fed’s tightening.
Higher steel prices have lifted US steel companies’ profitability this year. In this part, we’ll compare steel companies’ third-quarter adjusted EBITDA, which is the preferred profitability metric for steel companies (SPY).
US steel prices rose sharply in the first half of 2018 as President Trump’s Section 232 tariffs lifted US steel prices with the benchmark HRC (hot roll coil) prices rising to a decade high. Higher spot steel prices supported US steel companies’ average selling prices (or ASP) in the last two quarters. However, spot steel prices fell last month. Although prices have stabilized after companies like Nucor (NUE) and ArcelorMittal (MT) announced price hikes, they are still below their 2018 highs.
Previously in this series, we compared steel companies’ third-quarter shipments. In this part, we’ll look at their ASP (average selling price). The ASP is a key driver of steel companies’ performance and impacts their profitability. We saw a sharp rise in steel companies’ ASP this year after President Trump’s Section 232 tariffs lifted US steel prices (SPY) to multiyear highs.
As noted previously, steel companies like ArcelorMittal (MT), Nucor (NUE), and AK Steel (AKS) reported lower sequential shipments in the third quarter. ArcelorMittal also pointed to “temporary market weakness in the US.” According to Steel Dynamics, “customers took a temporary purchasing hiatus in anticipation of lower transaction prices as scrap pricing dipped a little and imports moderated some.” However, Nucor’s response was a bit more nuanced.
Steel companies’ revenues are a function of average steel prices and shipments. In this part, we’ll compare steel companies’ third-quarter shipments.
PITTSBURGH, Nov. 13, 2018 -- United States Steel Corporation (NYSE: X) today announced the ratification of new successor four-year collective bargaining agreements by the.
We’re towards the end of the third-quarter earnings season, and all of the leading US steel producers have released their quarterly earnings. Steel Dynamics was the first major steel company to release its quarterly results on October 17. Nucor (NUE) released earnings on October 18.
Industrial, Service Center and Mining Solutions and interim head of Tubular Products, Douglas Matthews, presented Mr. Leach with the traditional Chief Roughneck bronze bust and hard hat. "With Tim’s leadership, Concho expanded their position across the Permian by making six acquisitions in just under twelve years, creating the largest producer of unconventional shale in the Permian Basin,” said Matthews.
China’s Slowdown: How Severe Is It This Time? As we noted previously, some of the recent data points from China don’t portray a rosy picture of the world’s second-largest economy. China has been steering its economy away from an investment-driven economy to a consumption-driven economy.
China has been accused of unfair trade policies. In addition to President Trump, other regions have found fault with China’s trade practices. The European Union and India have blamed China for unfair trade practices.
Steel companies sounded upbeat about the US steel industry’s outlook during their third-quarter earnings calls. While Nucor (NUE), Steel Dynamics (STLD), and U.S. Steel Corporation (X) have announced share buybacks, Cleveland-Cliffs (CLF) has reinstated its dividend. Let’s see what leading steel companies said about the US steel industry’s health.
The big post-election rally on Wednesday has petered out a bit as the week draws to a close. We know the nation is politically divided, and now the market is showing us its split personality as well. We warned investors on Wednesday that this could happen since the election was unlikely to immediately solve the issues of rates, tariffs, President’s Trump’s legal woes, or the slowdown in earnings growth next year. As a result, the major indices are trying to give back their Wednesday gains. ...
As we noted previously, steel stocks like AK Steel (AKS) and ArcelorMittal (MT) are trading with a year-to-date loss. Steel stocks have underperformed broader equity markets (DIA) in 2018 despite President Trump’s Section 232 tariffs. In this part, we’ll discuss the key reasons why bears love steel stocks.
Earlier in 2018, President Trump slapped a 25% tariff on US steel imports and a 10% tariff on aluminum imports. For US steel and iron ore producers like U.S. Steel Corporation (X), AK Steel (AKS), and Cleveland-Cliffs (CLF), the higher level of imports is their greatest challenge. The companies said that the imports are unfairly subsidized by foreign governments.
China’s steel and aluminum overcapacity has received flak from its trading partners. Earlier this year, President Trump imposed tariffs on steel and aluminum imports in a bid to protect US manufacturers (DIA). In this part, we’ll discuss China’s October steel exports data in light of US tariffs.
U.S. Steel Corporation (X) released its third-quarter earnings on November 1 after the markets closed. The company reported revenues of $3.73 billion in the third quarter—compared to revenues of $3.60 billion in the second quarter and $3.25 billion in the third quarter of 2017.
Nucor (NUE), the largest US-based steel producer, released its third-quarter earnings on October 18. The company reported revenues of $6.74 billion in the third quarter—compared to $6.46 billion in the second quarter and $5.17 billion in the third quarter of 2017.
AK Steel (AKS) reported its third-quarter earnings on October 25 after the markets closed. The company reported revenues of $1.74 billion in the third quarter—compared to revenues of $1.75 billion in the second quarter and $1.49 billion in the third quarter of 2017. AK Steel reported an adjusted EBITDA of $161 million in the third quarter. In comparison, the company posted an adjusted EBITDA of $148 million in the second quarter and $69 million in the third quarter of 2017.