April 26 United States Steel Corp's shares
fell as much as 26.5 percent on Wednesday, a day after the
company reported a surprise first-quarter loss.
The company's stock slumped to a three-month low of $22.88
and was the biggest percentage loser on the New York Stock
Exchange. It was the second-most actively traded on the
exchange, with nearly 50 million shares changing hands by 11:00
The steelmaker late on Tuesday also reported
lower-than-expected revenue for the first quarter ended March
The company said the results were hurt by "operating
challenges" at its flat-rolled facilities that prevented it from
benefiting fully from improved market conditions.
Cowen and Co analyst Novid Rassouli said in a note that the
company's flat-rolled shipments were impacted by factors
including higher raw material costs and increased planned outage
US Steel said on a post-earnings conference call on
Wednesday that its profit for the year will be hurt by its
efforts to accelerate "asset revitalization", as it invests in
its steel mills to improve profitability.
"We now expect our investment in asset revitalization in
2017 to be approximately $300 million higher than it was in
2016," Chief Executive Mario Longhi said on the call.
As a result the company will be taking more downtime at its
facilities, limiting its steel production volumes.
U.S. Steel on Tuesday also reported seasonally lower results
from its mining operations.
(Reporting by Rachit Vats in Bengaluru; Editing by Maju Samuel)