U.S. Steel Expected To Return To Profitability

U.S. Steel Corp. X reported a softer 2Q due to maintenance expenses and higher than expected costs of its flat-rolled steel business, according to Dahlman Rose and U.S. Steel Corp. management. EPS is at $0.45 vs. Dahlman's estimate of $0.55, and Dahlman has lowered the price target to $61 from $80. Dahlman does maintain its "buy" rating, however. Regeneration is expected in the coming months, with steel prices and mill utilization trending higher, Dahlman believes U.S. Steel is well positioned to benefit. U.S. Steel Corp closed yesterday at $44.69.