Pittsburgh-based steel company United States Steel Corporation (US Steel) has provided forecasts for the first quarter of 2021.
David B. Berritt, President and CEO of US Steel, noted that the strong earnings growth during the quarter was mainly driven by strong market conditions and the timely acquisition of Big River Steel. Strong consumer demand for flat products in most end markets is likely to lead to significant gains in the flat products and US Steel Europe segments.
Restarting Gary’s # 4 blast furnace improved efficiency. The newly formed Mini Mill segment is expected to benefit from the current market environment.
The company noted that excessively high levels of imports tend to constrain the pace of business recovery.
The company expects 1Q2021 Adjusted EBITDA to remain unchanged at approximately $ 540 million. Adjusted net income for the first quarter of 2021 is also expected to be $ 265 million. This is after eliminating the consequences associated with the acquisition of the remaining stake in Big River Steel. Adjusted earnings also exclude the impact of one-off refinancing costs associated with balance sheet improvements made during the quarter