| U.S. Steel (X) May Consolidate Flat-Rolled Operations | |
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United States Steel Corp. X declared that it is examining a potential consolidation of its North American Flat-Rolled operations and may idle its Granite City Works steelmaking operations and most finishing operations in Granite City, Ill, on a temporary basis.
U.S. Steel usually adjusts its production to changing market conditions. This consolidation is a part of the same process and reflects continued challenging global market conditions, like volatility in oil prices, lower rig counts, dampened steel prices and unfairly traded imports.
The steel industry is struggling to cope with a surfeit of low-priced imports. Surging steel imports and oversupply in the industry are pressurizing prices, thereby hurting margins of American steel producers. Domestic steel makers are struggling to defend their turf from a flood of cheap imports from foreign manufacturers.
These macroeconomic conditions continue to have significant impact on U.S. Steel’s business, which calls for this adjustment to align production with customer demands. Moreover, owing to this possible consolidation, notices have been issued to 2,000 employees at Granite City Works under the Worker Adjustment and Retraining Notification (WARN) Act. These notices are separate from the earlier issued notices.
Amid a difficult operating environment, U.S. Steel is aggressively pursuing actions to improve its cost structure through its Carnegie Way program. The Carnegie Way initiative is expected to generate meaningful benefits in 2015, allowing the company to somewhat offset the operational challenges through the year.
Zacks Rank
U.S. Steel currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies in the basic materials sector include ThyssenKrupp AG TYEKF, Ryerson Holding Corporation Com RYI and Primero Mining Corp. PPP. While ThyssenKrupp sports a Zacks rank #1 (Strong Buy), Ryerson Holding Corporation and Primero Mining carry a Zacks Rank #2 (Buy).
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
United States Steel is a iron and tin producing company based in United states of america. United States Steel is listed in United States of America. Its market capitalisation is US$ 6.9 billions as of today (€ 6.4 billions). Its stock quote reached its lowest recent point on March 28, 2003 at US$ 10.01, and its highest recent level on November 30, 2007 at US$ 98.85. United States Steel has 176 184 431 shares outstanding. |