US Steel Stock Falls on Dismal Outlook for its Business
New York (CNN Business)United States Steel Corporation’s stock dropped almost 9% in after-hours trading Wednesday after US Steel (X) lowered its outlook for the second half of the year, citing falling steel prices and a lack of demand.
It’s the latest drop in a steady decline of the company’s share price — it is down about 60% from a year ago — as President Donald Trump’s promises to revive the industry have failed to materialize.
US Steel now projects a $0.35 loss per share for the three months ending in September, after taking a $53 million hit from a fire at one of its facilities and restructuring costs. The company also said negative market conditions and a lack of demand will result in the continued idling of two US blast furnaces, decreasing the company’s shipments in the quarter.
The company’s European operations are also hurting. In its Wednesday release, US Steel reiterated plans to reduce its headcount in Europe by 2,500 positions by the end of 2021, layoffs that were first announced in July. The European headquarters has already cut 1,800 positions to date.
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