(X) - Get United States Steel Corporation Report was rising Wednesday after the steelmaker said it plans to idle two furnaces in the U.S. and another in Europe as demand weakens and prices fall.
U.S. Steel also said it expects adjusted earnings in the fiscal second quarter of about 40 cents a share, below analysts' forecasts of 51 cents, and second-quarter adjusted EBITDA of about $250 million, excluding $15 million of costs related to a fire at its Clairton coke making facility in December.
The company will take one furnace off line at its mill in Gary, Ind., and another at its mill in Ecorse, Mich.
The company said the moves would decrease monthly blast furnace production capacity by about 200,000 to 225,000 tons beginning in July. If both furnaces remain idled for the remainder of the year, U.S. Steel said it expects flat-rolled shipments to be about 11 million tons, below a prior forecast of 11.5 million tons.
U.S. Steel said it would resume blast furnace production at one or both idled blast furnaces in the U.S. "when market conditions improve."
The benchmark price of hot-rolled coiled sheet steel in the U.S. has dropped by more than 35% since approaching a decade high last summer, according to The Wall Street Journal.
The stock gained 4.66% to $15.26 on Wednesday.