US Steel’s (NYSE: X) best 1st quarter ever and the company’s expectation to deliver its best ever Q2 was unable to prevent stocks from falling 5.4% Friday to a low of six weeks as industrial metal companies plunged into a broader carnage in the stock market.
US Steel (X) is consistently seeing strong orders from equipment manufacturers for cars and appliances as well as the construction industry, which will help it expand record earnings, CEO David Burritt said at the company’s earnings conference.
The steelmaker, whose $ 3.05 1st-quarter adjusted EPS beat Wall Street estimates, said it would seek to “meaningfully” increase second-quarter stock buybacks to reward investors in anticipation of some of the most profitable quarters ahead.
CFO Christine Breves said US Steel (X) had provided alternative supplies of iron ore and coal to its mill in Slovakia to reduce its dependence on shipments from Russia.
The company told analysts that all coal deliveries from Russia to the Slovakian mill have stopped, with “uninterrupted flow” of iron ore directly into the mill, which has ~ 78 days of inventory, and shipping volumes from Europe are expected to remain constant in the coming quarters.
US Steel (X) is “better than Amazon” as it is “very convincing to pay 6x this year’s free cash flow”, writes Michael Wiggins de Oliveira in a new analysis published on Seeking Alpha.