U.S. Steel (X - Get Report) fell sharply Thursday after the steelmaker said it expects an adjusted loss for the third quarter of 35 cents a share, well below forecasts that called for a loss of 10 cents.
The period includes charges of $53 million from a fire at one of its plants and restructuring costs.
The company said because of a lack of demand it would continue to idle two blast furnaces until the end of 2019, decreasing third-quarter shipments.
"The positive flat-rolled steel market indicators experienced earlier this summer have softened after a brief recovery in steel selling prices," U.S. Steel said. "The impact of falling steel prices through the second quarter, combined with the impact of a larger-than-expected drop in scrap prices on market sentiment, is expected to negatively impact flat-rolled earnings in the second half of the year."
The steel giant said market conditions in Europe "have continued to deteriorate, as the dislocation between steel selling prices and raw material costs continues to result in significant margin compression." U.S. Steel reiterated it would reduce headcount in Europe by 2,500 by the end of 2021.
The company's tubular segment also is expected to "remain under pressure for the remainder of the year as market conditions have turned negative and import levels remain high," U.S. Steel said.
The stock fell 12.45% in trading Thursday to $10.90.