Can Handle The Strong Dollar, But Not Dumping: United States Steel CEO

Shares of United States Steel CorporationX fell more than 10 percent in a day recently when the company reported its first-quarter earnings that were way below estimates. While analysts had expected EPS of $0.12, the company reported an EPS loss of $0.52.

Mario Longhi, U.S. Steel CEO, was on CNBC Wednesday to discuss the problem that his company and steel producers in the U.S. are facing overall, especially dumping.

Not Dollar But Dumping

Longhi highlighted the dumping problem the industry is facing, saying, “If the strong dollar was the only thing we needed to contend with, I think we could handle it. The problem is if you look before the dollar got strong, if you look at the massive amounts of dumping that has been taking place continuously. That has been the source for the major problems for the industry.”

Layoffs

Longhi revealed that U.S. Steel employs almost 40,000 people around the globe, out of which 28,000 employees are here in the U.S. However, due to the current meltdown the U.S. employee strength could drop below 20,000 in this cycle.

“Right now we have about 9,000 of our people under [warrant] notices,” Longhi said.

Who Is Responsible?

Longhi was asked which country or countries are majorly responsible for dumping problem. He replied, “South Korea, China, Russia, Vietnam, Indonesia, Brazil it’s coming from everywhere. You got to remember, our country remains the most open country in the world and if you look at the trade partners that we have, most of them have some kinds of inhibiting rules for trade.”