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Researched by Industrial Info Resources (Sugar Land, Texas)--United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania) has reported positive second-quarter 2017 results, as the company swung to a $261 million profit from a $46 million loss in the same quarter of 2016. Industrial Info is tracking $182 million in project activity by the steel producer.
Second-quarter sales totaled $3.14 billion, compared with $2.58 billion in second-quarter 2016.
Chief Executive Officer Dave Burritt said U.S. Steel's facilities performed better in the second quarter, particularly in its Flat-Rolled segment. "Better operations, combined with higher prices and volumes in all of our segments and improved results from our mining operations, resulted in a $300 million improvement in our segment results compared with the first quarter," he said in the company's earnings statement.
The improvement in the Flat-Rolled segment was primarily due to higher results from U.S. Steel's mining operations and a second consecutive quarter of increasing average realized prices and shipments. The company said the higher results from its mining operations reflect the benefits from the $1.5 million restart of the Keetac Taconite Mine and Pellet Plant in Keewatin, Minnesota. For more information, see Industrial Info's project report.
Looking forward, Burritt said: "We are seeing a more bullish sentiment in the markets served by our Flat-Rolled and European segments right now, as prices have been increasing and overall demand has been stable. Our Tubular segment continues to benefit from operational and cost improvements we have made, as well as from stronger market conditions."
U.S. Steel expects capital spending for its asset revitalization program to be about $1.2 billion from 2017 through 2020, according to its earnings presentation. This includes $200 million for blast furnace operations, $400 million for steel making, $300 million for hot rolling and $300 million for finishing operations. Capital spending for 2017 is expected to be $200 million to $250 million. By 2020, the company plans to increase hot-rolled band production capacity by about 1 million tons from its current 2017 forecast of about 10 million tons.
AK Steel Also Sees Good Results
On Monday, AK Steel Corporation (NYSE:AKS) (West Chester, Ohio) reported second-quarter 2017 net income of $61.2 million, compared with $17.3 million in net income for second-quarter 2016. Industrial Info is tracking 18 AK Steel projects worth $203 million. AK Steel's $50 million rebuild and repair of its basic oxygen furnace at its Middleton Steel Works site in Ohio is expected to be completed this September. The rebuild/repair of the 225-ton basic oxygen furnace is performed every 15-20 years at the 2.7 million-ton-per-year steel mill to improve operations and extend the furnace life. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Second-quarter sales totaled $3.14 billion, compared with $2.58 billion in second-quarter 2016.
Chief Executive Officer Dave Burritt said U.S. Steel's facilities performed better in the second quarter, particularly in its Flat-Rolled segment. "Better operations, combined with higher prices and volumes in all of our segments and improved results from our mining operations, resulted in a $300 million improvement in our segment results compared with the first quarter," he said in the company's earnings statement.
The improvement in the Flat-Rolled segment was primarily due to higher results from U.S. Steel's mining operations and a second consecutive quarter of increasing average realized prices and shipments. The company said the higher results from its mining operations reflect the benefits from the $1.5 million restart of the Keetac Taconite Mine and Pellet Plant in Keewatin, Minnesota. For more information, see Industrial Info's project report.
Looking forward, Burritt said: "We are seeing a more bullish sentiment in the markets served by our Flat-Rolled and European segments right now, as prices have been increasing and overall demand has been stable. Our Tubular segment continues to benefit from operational and cost improvements we have made, as well as from stronger market conditions."
U.S. Steel expects capital spending for its asset revitalization program to be about $1.2 billion from 2017 through 2020, according to its earnings presentation. This includes $200 million for blast furnace operations, $400 million for steel making, $300 million for hot rolling and $300 million for finishing operations. Capital spending for 2017 is expected to be $200 million to $250 million. By 2020, the company plans to increase hot-rolled band production capacity by about 1 million tons from its current 2017 forecast of about 10 million tons.
AK Steel Also Sees Good Results
On Monday, AK Steel Corporation (NYSE:AKS) (West Chester, Ohio) reported second-quarter 2017 net income of $61.2 million, compared with $17.3 million in net income for second-quarter 2016. Industrial Info is tracking 18 AK Steel projects worth $203 million. AK Steel's $50 million rebuild and repair of its basic oxygen furnace at its Middleton Steel Works site in Ohio is expected to be completed this September. The rebuild/repair of the 225-ton basic oxygen furnace is performed every 15-20 years at the 2.7 million-ton-per-year steel mill to improve operations and extend the furnace life. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
