Is Management Really to Blame for United State Steel Corp.’s Woes?
In recent years United States Steel Corp. (NYSE: X) has been focused on surviving a deep industry downturn, not investing for the future. Now that the industry is turning around United States Steel is playing catch up on the investments it should have made, unlike industry leader Nucor Corp. (NYSE: NUE) which kept spending throughout the downturn. U.S. Steel's management is largely to blame for that, and a new team at the helm isn't an instant solution.
When U.S. Steel announced first-quarter results in April, investors were shocked by what they heard. First, on the bottom line, it reported a loss of $1.03 a share. By contrast, Nucor's earnings of $1.11 a share were up materially from the $0.27 it earned in the prior year. And Steel Dynamics (NASDAQ: STLD) posted a profit of $0.82 a share, up from $0.26. To be fair, U.S. Steel's results were an improvement from its loss of $2.32 in Q1 2016, but investors were expecting more with even then CEO Mario Longhi noting the improving market conditions.
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Source: Fool.com
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