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Researched by Industrial Info Resources (Sugar Land, Texas)--The Trump administration's embrace of tariffs has spurred heated debate at home and abroad, with the domestic steel-production industry among its staunchest defenders. The most recent quarterly results for United States Steel Corporation (NYSE:X) (Pittsburgh, Pennsylvania) show why: The policy has significantly boosted prices and operating profits for the company, which has an optimistic outlook for the coming years. Industrial Info is tracking more than $1 billion in active projects involving U.S. Steel, more than 60% of which are nearing or under construction.
Click on the image at right for a graph detailing projects involving U.S. Steel, by state.
Many steel consumers, such as automakers and pipeline developers, are far less enthusiastic. At least two major auto trade groups expressed dismay over the tariffs earlier this summer, while several energy-pipeline companies begged the administration for exemptions. But U.S. Steel isn't locking arms with them anytime soon; the company's operating profit increased 38% for the second quarter when compared with the same period last year, and it now expects profits for the full year to more than triple when compared with 2017.
An immediate benefit can be found at U.S. Steel's flat-rolled steel plant in Granite City, Illinois, where the company is at work on the restart of blast furnace "A" and recently completed the restart of blast furnace "B". The company anticipates incremental shipments of about 75,000 and 100,000 tons per month, respectively, from the furnaces, with "A" coming online in October. For more information, see Industrial Info's project reports on furnace "A" and furnace "B".
"We are encouraged by the Trump administration's actions to address the threat to the U.S. manufacturing base, our economic competitiveness and our national security from unfairly traded steel imports and global excess capacity," the company said in a quarterly press release.
Bigger projects are on the horizon. Pro-Tec Coating Company, a U.S. Steel subsidiary, is in the site preparation phase for a hot-dip galvanizing line addition at a steel coating plant in Leipsic, Ohio. The new, 500,000-ton Generation 3 (GEN3) coating line will cater to automakers who are shifting toward lightweight vehicles and trying to meet fuel-efficiency requirements and safety standards. In a quarterly earnings-related conference call, executives stressed the new line will help U.S. Steel maintain its leading position in advanced high-strength steel. For more information, see Industrial Info's project report.
U.S. Steel's capital expenditures totaled $173 million for the quarter, compared with $73 million in second-quarter 2017, another sign of stronger financial security.
Other projects in the works address improvements at existing facilities. The company is planning $64 million in upgrades and equipment additions at one mill, which will improve the tin and strip-tracking lines, and a $35 million overhaul of a blast furnace at Edgar Thomson Steel Works in Braddock, Pennsylvania, which will reline and rebuild Furnace 3, which has a capacity of 1.1 million tons per year. For more information, see Industrial Info's reports on the steel-product plant and blast furnace projects.
U.S. Steel's net earnings stood at $232 million for the first half of the year, compared with just $81 million for the first half of 2017. Second-quarter earnings alone were $214 million, an 18% decrease from the second quarter of 2017. Total sales were reported to be $6.76 billion for the first half of 2018, a 15.15% increase from the first half of 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
Click on the image at right for a graph detailing projects involving U.S. Steel, by state.Many steel consumers, such as automakers and pipeline developers, are far less enthusiastic. At least two major auto trade groups expressed dismay over the tariffs earlier this summer, while several energy-pipeline companies begged the administration for exemptions. But U.S. Steel isn't locking arms with them anytime soon; the company's operating profit increased 38% for the second quarter when compared with the same period last year, and it now expects profits for the full year to more than triple when compared with 2017.
An immediate benefit can be found at U.S. Steel's flat-rolled steel plant in Granite City, Illinois, where the company is at work on the restart of blast furnace "A" and recently completed the restart of blast furnace "B". The company anticipates incremental shipments of about 75,000 and 100,000 tons per month, respectively, from the furnaces, with "A" coming online in October. For more information, see Industrial Info's project reports on furnace "A" and furnace "B".
"We are encouraged by the Trump administration's actions to address the threat to the U.S. manufacturing base, our economic competitiveness and our national security from unfairly traded steel imports and global excess capacity," the company said in a quarterly press release.
Bigger projects are on the horizon. Pro-Tec Coating Company, a U.S. Steel subsidiary, is in the site preparation phase for a hot-dip galvanizing line addition at a steel coating plant in Leipsic, Ohio. The new, 500,000-ton Generation 3 (GEN3) coating line will cater to automakers who are shifting toward lightweight vehicles and trying to meet fuel-efficiency requirements and safety standards. In a quarterly earnings-related conference call, executives stressed the new line will help U.S. Steel maintain its leading position in advanced high-strength steel. For more information, see Industrial Info's project report.
U.S. Steel's capital expenditures totaled $173 million for the quarter, compared with $73 million in second-quarter 2017, another sign of stronger financial security.
Other projects in the works address improvements at existing facilities. The company is planning $64 million in upgrades and equipment additions at one mill, which will improve the tin and strip-tracking lines, and a $35 million overhaul of a blast furnace at Edgar Thomson Steel Works in Braddock, Pennsylvania, which will reline and rebuild Furnace 3, which has a capacity of 1.1 million tons per year. For more information, see Industrial Info's reports on the steel-product plant and blast furnace projects.
U.S. Steel's net earnings stood at $232 million for the first half of the year, compared with just $81 million for the first half of 2017. Second-quarter earnings alone were $214 million, an 18% decrease from the second quarter of 2017. Total sales were reported to be $6.76 billion for the first half of 2018, a 15.15% increase from the first half of 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.
