U.S. Steel expects an adjusted loss per share of $3.06, compared with Wall Street's expectations of a loss of $1.73 a share, according to a FactSet survey of analysts.
The company expects an loss before interest, taxes, depreciation and amortization of $315 million, which excludes about $100 million of estimated charges.
“As expected, the second quarter is being significantly impacted by the effects of covid-19 and the expected nonrecurring costs associated with a significant portion of our steelmaking operations being idled in the quarter," Chief Executive David Burritt said in a statement.
The company said that optimism for the business is growing. That's because original-equipment manufacturers are reopening as coronavirus restrictions are lifted.
The company reiterated that it expected the second quarter to be the bottom for its business, with demand already starting to pick up in June.
“Our future is now, and we have taken significant actions this quarter to advance our ‘best of both’ integrated and minimill steel customer-focused technology strategy," Burritt said.
The company is also actively marketing its "valuable portfolio of real estate assets" as well as strategic options for its UPI business for a potential sale.
U.S. Steel also said that it had identified and completed actions that would allow the company to achieve its goal reducing fixed costs by $200 million a year ahead of its original plan of 2022 for that benchmark.
U.S. Steel shares at last check were off 3.5% at $10.10. The stock rose about 10% during Tuesday's session. It touched a 52-week low above $4.50 in mid-March and has more than doubled since then.