United States Steel Corporation (NYSE: X) gained ground after the company reported upbeat earnings for its third quarter and issued a strong forecast for FY17.
United States Steel reported Q3 net earnings of $147 million, or $0.83 per diluted share. Adjusted net earnings were $161 million, or $0.92 per diluted share, which excluded a gain of $21 million, or $0.11 per diluted share, related to equity affiliate transactions, primarily due to the sale of our ownership interest in Tilden Mining Company L.C., and a debt extinguishment loss and other related costs of $35 million, or $0.20 per diluted share.
Third-quarter 2016 net earnings were $51 million, or $0.32 per diluted share.
Commenting on U. S. Steel’s results, President and Chief Executive Officer Dave Burritt said, “Our third quarter results were modestly better than we expected, with stable operating performance at each of our segments and our Tubular segment producing positive EBITDA in the quarter.
If market conditions remain at their current levels, X expects 2017 net earnings of approximately $323 million, or $1.83 per share, 2017 adjusted net earnings of approximately $300 million, or $1.70 per share, and consolidated adjusted EBITDA of approximately $1.075 billion.
United States Steel harbors the opinion that market conditions, which include spot prices, raw material costs, customer demand, import volumes, supply chain inventories, rig counts and energy prices, will change, and as changes occur during the balance of 2017, it expects these changes to be reflected in its net earnings and adjusted EBITDA.
Shares in X leaped $2.37, or 9.4%, to $27.69.
