As the earnings season continues, the more eagle-eyed of you will also notice that US Steel’s Q4 & annual EBITDA and operating income results have been added to the NOS earnings spreadsheet which you can access here or see in the Steel Dynamics post below. You can see the full US Steel Q4 earnings release here.
Before we get too “hoity-toity” about the effects of Chinese industrial expansion on the Chinese and global environment, it’s worth being reminded of events in the not so distant past that affected industrial cities in the West and how we talked about them. Read the rest of this entry »
A senior steel industry manager who had just been offered a promotion to head office was reflecting on his choice. Looking for guidance, he asked a colleague for advice. ‘Just add value,’ was the terse reply. His implication of course was that corporate ‘overhead’ usually doesn’t. His deeper implication was that real value is only added in the operating units. In the new world of the steel industry, that bias could be costing steel companies growth and performance.
Steel industry employees have long been suspicious of corporate headquarters - with good reason.
The attached spreadsheet has a quick analysis of what US Steel paid, in total and $/ton of capacity. Most news reports seem to include only the cost of Stelco equity, this spreadsheet adds in the assumed debt.
Here’s a link to the presentation re: the acquisition on US Steel’s website http://www.uss.com/corp/investors/presentations/Roadshow%20Presentation%20Final.ppt
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