US Steel shares plunge on news of $180m loss, billion-dollar repair bill

US Steel shares suffered the worst one-day drop in the company’s history on Wednesday April 26 as executives pledged to spend more than $1 billion to repair the company's troubled mills.

Shares of the Pittsburgh-based steelmaker fell 25% from the previous close of $31.11 to end the day at $23.43 per share. The big decline came after US Steel posted a surprise $180 million first-quarter loss and lowered its full-year earnings guidance, when previous consensus estimates suggested the company would turn a solid profit. US Steel blamed the big loss largely on operational problems at its flat-rolled mills. And it pledged to take downtime to fix the issues – something company executives acknowledged would limit its ability to sell spot tons into a strong steel market. “We’ve got the firepower now with our balance sheet to accelerate [the repairs]. This year...

Published

Michael Cowden

April 26, 2017

21:20 GMT