Yahoo Finance U.S. Steel sees upbeat Q3 profit on higher prices, lower material costs
(Reuters) — U.S. Steel (X) on Monday forecast current-quarter profit above Wall Street estimates and said each of its segments outperformed prior expectations, driven by a decline in raw material costs and higher prices for flat-rolled products.
The steel manufacturer said the third-quarter forecast includes a projected impact from the United Auto Workers (UAW) strike, which has now entered its fourth day with little sign of a resolution in sight.
The company expects an adjusted per-share profit of $1.10 and $1.15 in the third quarter, compared with analysts' average estimate of $1.01 per share, according to LSEG data.
Shares of the company were up about 1% in extended trading, after spiking in the wake of the forecast.
Average selling prices at the flat-rolled segment, which generates revenue from sheet and coated product sales, were likely to top its July expectations even as spot prices declined from the previous quarter, U.S. Steel said.
It expects to end the quarter with about $3 billion of cash on hand.
The company last month said it had entered into confidentiality agreements with numerous parties and was reviewing multiple unsolicited proposals ranging from partial acquisition to an entire buyout.
Cleveland-Cliffs has made a $7.3 billion offer for U.S. Steel, while ArcelorMittal SA, the world's second-largest steelmaker, is also considering a potential offer.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shweta Agarwal)
