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Will U.S. Steel (X) Beat Earnings Estimates in Q3?-金属展-冶金展-2015广州巨浪国际金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-The 16th China(Guangzhou)Int’l
;Metal &MetallurgyExhibition
10/29/2014 金属展-冶金展-钢铁展-steel expo-metal &metallurgy expo- |
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U.S. Steel has missed the Zacks Consensus Estimate in 1 of the trailing 4 quarters with an average positive surprise of 103.68%. The Zacks Consensus Estimate for U.S. Steel for the third quarter has gone up 1.7% since the last 7 days and now stands at $1.17 per share.
Let’s see how things are shaping up for this announcement.
Factors to Watch For
U.S. Steel is actively engaged in improving its cost structure and increasing revenues on a sustainable basis through its “Carnegie Way” initiative that includes shutdown of operations, manufacturing process/logistics improvements and savings on SG&A costs. These efforts are expected to deliver $435 million (up from $290 million expected earlier) in cost and margin improvements in 2014, most of which is likely to be realized in the Flat-rolled segment. The company also expects roughly $700 million in additional cash flow benefit in 2014 from working capital improvement and tax reduction with $650 million being already realized in first half.
U.S. Steel expects a significant improvement in its third-quarter operating income from its reportable segments and other businesses. Moreover, the company’s operations performed well and steel market conditions in the U.S. have remained stable. As a result, the company anticipates results, adjusted for some one-time charges to be considerably higher than the current consensus.
U.S. Steel also decided to discontinue an expansion of its iron ore pellet operations in Keewatin, MN, and also stated that it will forgo further construction of carbon alloy operations at its Gary, IN, location. These moves will allow it to redirect funding to other projects.
U.S. Steel is continuing with its efforts to implement an enterprise resource planning (:ERP) system to replace its existing information technology system, which will enable it to operate more efficiently. The completion of the ERP project is expected to provide further opportunities to streamline, standardize and centralize business processes in order to maximize cost effectiveness, efficiency and control across its global operations. The company is also developing additional projects within its Tubular segment, such as facility enhancements and additional premium connections that will further improve its ability to support Tubular customers’ evolving needs.
U.S. Steel is seeing a decline in costs associated with its pension and other post-employment benefits (:OPEB) plans. The funded status of its pension and OPEB plans has improved considerably, aided by the economic recovery. Pension and OPEB obligations are a significant part of U.S. Steel’s cost and capital structure and the company expects its costs to be down by over $100 million year over year in 2014.
金属展-冶金展-2015广州巨浪国际金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-The 16th
China(Guangzhou)Int’l Metal &MetallurgyExhibition
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