text size
US Steel said it expects positive orders and higher selling prices to continue in the second quarter.
INA FASSBENDER/AFP/GETTY IMAGES
United States Steel
‘S
Better-than-expected earnings guidance was boosting its shares and those of other steelmakers on Friday. Higher prices for steel look to remain a good sign for the sector as a whole.
United States Steel
(ticker: X) gained 5% in premarket trading on Friday after giving its first-quarter outlook.
nucor
(NUE) was up 1.7% and
Steel Dynamics (STLD)
rose 1.6%.
“Our continued focus on strong safety and operating performance, improvement in order entry and win share in strategic markets led to a better-than-expected first quarter guidance,” said David Burritt, CEO of United States Steel. in a statement, “We expect these trends to continue in the second quarter through extended lead times and flow of higher selling values.”
The company noted higher flat-rolled steel demand in North America, an indicator of strong activity from manufacturers, including makers of industrial machinery.
Other steel companies have also indicated a price hike.
cleveland-rocks
(CLF), recently a major supplier to the automotive industry raised its prices Sixth time since mid-December. Cleveland-Cliffs rose 1.7% in premarket trading.
United States Steel forecast first-quarter adjusted earnings of between 58 cents and 63 cents per share. Analysts polled by FactSet expected adjusted earnings of 19 cents per share.
Write to Adam Clark at [email protected]