Breaking News

Tweet TWEET

Zacks Industry Outlook Highlights: ArcelorMittal, United States Steel Corp, Nucor Corporation and AK Steel Holding Corporation

 Zacks Industry Outlook Highlights: ArcelorMittal, United States Steel Corp,
              Nucor Corporation and AK Steel Holding Corporation

PR Newswire

CHICAGO, Nov. 16, 2012

CHICAGO, Nov. 16, 2012 /PRNewswire/ --Today, Zacks Equity Research discusses
the Steel Industry, including ArcelorMittal (NYSE: MT), United States Steel
Corp (NYSE: X), Nucor Corporation (NYSE: NUE) and AK Steel Holding Corporation
(NYSE: AKS).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Industry: Steel

Link:
http://www.zacks.com/stock/news/86959/steel-industry-stock-outlook-nov-2012

The recently reported third quarter results of the steel companies in our
coverage – ArcelorMittal (MT), United States Steel Corp. (X), Nucor
Corporation (NUE) and AK Steel Holding Corporation (AKS) paints a gloomy
picture. Revenues were constrained across the board due to drop in average
steel prices and shipments.

All the steel players have been plagued by weak steel demand, oversupply in
the U.S. steel industry and increased steel imports in the domestic market,
which have affected steel prices hurting margins in the process. The weak
global conditions are a deterrent factor for volumes.

A preview for the upcoming fourth quarter and fiscal 2012 suggest that steel
behemoth, ArcelorMittal is anticipating iron ore shipments to increase 10% in
2012 from last year levels. The company, wary of the global economic
situation, particularly Europe, has decided to shut down plants, cutting down
its planned 2013 capital expenditures. However, the most dramatic announcement
was the company's intent to slash its annual dividend by 73% to 20 cents per
share.

United States Steel expects its segments results to remain affected in the
fourth quarter based on the assumption of lower average realized prices as
well as lower shipments. The Tubular segment is expected to deliver profits,
but significantly below the third quarter levels.

The USSE segment is expected to break even while the Flat Rolled segment is
expected to be in the red. Softness in Europe as well as in the emerging
markets and the economic uncertainty in North America are expected to weigh
down its fourth quarter results.

AK Steel has not yet provided any specific guidance for the fourth quarter or
fiscal 2012. The company, however, put forward its expectation of posting a
loss in the fourth quarter, which includes a non-cash tax expense. Nucor also
expects its profits to be reduced in the fourth quarter.

Now, what will be the exact picture in the upcoming results? The U.S. steel
market is plagued by oversupply and increased imports. Although Chinese steel
production, which was responsible for causing the glut to some extent, has
somewhat slowed down, supply in the steel market still overshadows demand.

Increasing domestic imports along with oversupply in the industry due to a
ramp up in operations by other steelmakers, is putting pressure on prices. We
expect weak pricing, the European debt crisis and its potential global impact
to remain an overhang on the steel industry in the quarter. In terms of end
markets, the automotive sector holds promise and the impending recovery in the
construction market, if permanent, will definitely provide a boost to the
steel industry.

The extent of the impact of Hurricane Sandy that hit the East Coast in late
October is yet to be assessed by the steel companies. Nucor temporarily shut
down its Connecticut rebar and wire rod mill and United States Steel
temporarily stalled its Fairless operation in eastern Pennsylvania.

Fourth quarter results might be affected due to the interruption in operations
and associated costs/losses. However, in the near future, the steel companies
will stand to benefit from the rebuilding activities necessary following the
storm.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978. The later formation of the Zacks Rank, a proprietary stock picking
system; continues to outperform the market by nearly a 3 to 1 margin. The best
way to unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email newsletter; Profit
from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED
to be worth your time! Register for your free subscription to Profit from the
Pros.

Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch

Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
any security.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, brokerage, market making or
asset management activities of any securities. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.

SOURCE Zacks Investment Research, Inc.

Website: http://www.zacks.com
 
Press spacebar to pause and continue. Press esc to stop.