US Steel Stock Slips on Weaker-Than-Expected Outlook | Global News Avenue

United States Steel Corporation (XShares fell on Friday after the steelmaker gave weaker-than-expected guidance for the quarter due to lower prices and costs related to a plant under development in Arkansas.

The company said it expects an adjusted loss of $0.25 to $0.29 in the fourth quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) $150 million. Analysts polled by Visible Alpha expected adjusted profit of $0.16 per share and adjusted EBITDA of $251 million.

Chief Executive Officer (CEO) David Burritt explained that “steel prices remain depressed and costs related to the BR2 capacity ramp-up weighed on the quarter.” BR2, or Big River 2, is a steelmaking plant near Osceola, Arkansas, which the company said The steel plant will be the most advanced steelmaking facility in North America.

European demand, pricing weak

Burritt added that while the company’s North American flat steel division continued to generate solid EBITDA due to a diversified product mix, softer demand and pricing had a negative impact on European results.

The news comes days before U.S. regulators are scheduled to decide whether to approve Japan’s Nippon Steel Corp.’s $14 billion takeover of U.S. Steel. Both President Biden and President-elect Trump express objection to merge.

this financial times According to reports, Japanese company executive Takahiro Mori has been flying around the United States, meeting with Washington officials and steel workers in an effort to save the deal.

Shares of US Steel fell 4% on Friday morning and are down about 38% this year.