20.12.2019 16:26:00

Why Shares of United States Steel Are Falling Today

Shares of United States Steel (NYSE: X) dropped 8% on Friday morning after the steelmaking giant cut guidance and lowered its dividend. The company promised "swift action" in response to difficult market conditions, but there is no easy fix.U.S. Steel said it expects a fourth-quarter loss of about $1.15 per share, well below the consensus expectation for a $0.59-per-share loss, due in part to restructuring efforts. The company said that while it sees signs of a recovery in the North American steel market, Europe remains weak, as does the tubular segment.For the year, the company now expects a loss of $0.42 per share, compared to expectations for a $0.04 profit. U.S. Steel also cut its quarterly dividend to $0.01 per share from $0.05 per share, making it less attractive to income-focused investors. The cut, coupled with a $75 million decrease in planned capital spending for 2020, should preserve about $100 million of cash next year.Continue reading
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