(Reuters) - United States Steel Corp (X.N) beat Wall Street estimates for quarterly profit on Thursday, as the Trump administration’s hefty tariffs on imported steel boosted prices and shipments.
However, shares of the company fell 3 percent after it cut its full-year adjusted earnings before interest, tax, depreciation and amortization (EBITDA) and said it was seeing lower customer orders as steel prices fall from their highs.
The steelmaker cut its 2018 adjusted EBITDA to about $1.80 billion, compared with its earlier forecast of $1.85 billion to $1.9 billion.
While U.S. steel prices and production have hit multi-year highs due to tariffs and strong demand from an expanding economy, analysts have expressed concerns that U.S. steel prices may have reached a peak and would fall due to oversupply.
The worries were further intensified after larger rival Nucor Corp (NUE.N) reported a sequential drop in third-quarter shipments in October.
U.S. Steel posted a 4 percent jump in total quarterly shipments from a year earlier, but they were nearly flat compared with the second quarter.
Net income attributable to the company rose to $291 million, or $1.62 per share, in the third quarter ended Sept. 30 from $147 million, or 83 cents per share, a year earlier.
Excluding items, it earned $1.79 per share, beating estimate of $1.73, according to IBES data from Refinitiv .
Revenue rose to $3.73 billion, above analysts’ estimate of $3.71 billion.
Reporting by Arunima Banerjee in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva