(Bloomberg) — U.S. Steel Corp. shares slumped after its earnings outlook fell short of analyst expectations, amid softer early-year demand and prices that have slipped from last year’s highs.
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The Pittsburgh-based company forecast adjusted earnings of $2.96 to $3 per share, below the Bloomberg consensus analyst estimate of $3.77. Average prices for steel so far this quarter are down more than 30% from the last three months of the year, dragging down earnings for U.S. producers. The announcement comes after Nucor Corp., the largest U.S. producer, also gave a weaker-than-expected outlook, citing reduced profits from its steel mill output.
While shares sank as much as 5.6% in trading after regular exchange hours, it’s widely known in the industry that the first quarter of the year is typically slow for steel companies as construction doesn’t begin to pick up…
