By Christiana Sciaudone
Investing.com -- U.S. Steel jumped nearly 10% after saying market conditions are improving.
Third quarter 2020 adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization costs, are expected to be approximately negative $100 million, and the adjusted diluted loss per share to be approximately $1.45. In the second quarter, the adjusted Ebitda loss was $264 million.
“Improving market conditions experienced in June and July have accelerated through August and September. Strengthening steel fundamentals and our ability to respond quickly to increasing customer demand are expected to result in significantly improved adjusted EBITDA in the third quarter,” U. S. Steel Chief Executive Officer David B. Burritt said in a statement.
“We have grown confident in the recovery that is underway in North America and Europe. While we believe this recovery is enduring, we remain relentlessly focused on what we can control, including management actions to stay nimble, reduce costs, and preserve cash,” Burritt said.
The Flat-rolled segment results will continue to be negative in the third quarter, but "significantly better" than second quarter results. The company's order book and lead times have improved, and it has restarted three blast furnaces that were temporarily idled earlier this year.
In Europe, the pace of market improvement also exceeded company expectations, and third quarter results should be better than in the previous quarter.
Shares have more than doubled since March, but are still lower for the year. The stock has four hold ratings.