3Q Preview On U.S. Steel

Deutsche Bank has issued a company alert on US Steel

in anticipation of 2Q10 results. In the report, Deutsche Bank writes "Prior comments from X noted that profitability will decline in 3Q as a result of lower shipments & higher maintenance costs in its Flat rolled segment. Tubular is the only unit expected to report improved sequential earnings. In Flat-Rolled, we forecast EBIT to be NIL (vs $98MM in 2Q10), and our other segment EBIT estimates are: Europe = $20MM ($19MM in 2Q); and Tubular= $118MM ($96MM in 2Q). We expect U.S. Steel to report 3Q EPS of $0.20 vs $0.45 in 2Q10. This estimate also compares with a Street forecast of $0.24 and translates to EBITDA of $267MM (vs $345MM in 2Q10 and $-248MM in 3Q09)." Deutsche Bank maintains its Buy rating and $54 price target. US Steel closed yesterday at $44.83.