Oct 25 (Reuters) - Shares of two major U.S. steelmakers fell sharply on Tuesday on gloomy industry expectations for the rest of the year.
Both companies earlier reported third-quarter results that beat Wall Street estimates, but which also showed a deterioration from the second quarter.
U.S. Steel said it expects to report lower operating results in the fourth quarter for its North American flat-rolled and European operations as a result of slow and uneven economic recovery in those regions.
AK Steel did not even give a forecast for the fourth quarter, citing uncertainty and volatility in the U.S. economy and other markets.
Analyst Mark Parr, of KeyBanc Capital Markets, said U.S. Steel’s fourth-quarter outlook implied lower EBITDA, or earnings before interest, taxes, depreciation and amortization, that Wall Street expectations.
“But we believe investors had not built much faith in fourth-quarter expectations given the recent declines in flat-rolled pricing realizations and choppy macro data,” Parr wrote in a research note.
Reporting by Steve James, editing by Dave Zimmerman