=U.S. Steel (X) guides Q3 EPS below consensus

U.S. Steel guides Q3 EPS below consensus, note: Nucor also guided lower on Monday; co expects idled blast furnaces in US and Europe to remain idled thru at least the end of the year

Co expects Q3 adjusted EBITDA of approximately $115 mln, which excludes $53 mln from the December 24, 2018 fire at its Clairton coke making facility and estimated restructuring charges.

Co expects Q3 adjusted EPS of approx $(0.35) vs CapitalIQ consensus of $0.01.

Co says that the the positive flat-rolled steel market indicators experienced earlier this summer have softened after a brief recovery in steel selling prices. The impact of falling steel prices through Q2 combined with the impact of a larger than expected drop in scrap prices on market sentiment, is expected to negatively impact Flat-rolled earnings in 2H19.

As a result, co expects that two blast furnaces will remain idled through at least the end of the year. Based on the continued idling of two US blast furnaces and current demand forecasts, co now expects full year Flat-rolled shipments to be approximately 10.7 million tons.

In Europe, market conditions have continued to deteriorate, as the dislocation between steel selling prices and raw material costs continues to result in significant margin compression. Co does not expect to restart the currently idled blast furnace this year.

Co expects its Tubular segment to remain under pressure for the remainder of the year as market conditions have turned negative and import levels remain high.