U.S. Steel Corp. warned of a fourth-quarter loss, announced that it would shut down most of its Great Lakes Works near Detroit, lay off more than 1,500 workers and slash its dividend, Bloomberg News reported. The company will indefinitely idle a “significant portion” of the Michigan operation, starting with the iron and steel-making facilities in April and then the hot-strip mill rolling facility before the end of 2020, according to a statement. Some 1,545 workers will get so-called adjustment notices. There is expected to be an adjusted loss of about $1.15 per share for the three months to Dec. 31, and a full-year, fully-diluted loss of 42 cents. The dividend will be reduced to 1 cent from 5 cents, and capital expenditure will be pruned, with both moves helping to preserve cash. The announcement from the Pittsburgh-based company highlights the challenges facing U.S. steelmakers, even though mills have enjoyed protection from the import tariffs erected by President Donald Trump. It also comes amid a flurry of M&A activity that’s reshaping the staple industry in the top economy. “Current market conditions and the long-term outlook for Great Lakes Works made it imperative that we act now,” U. S. Steel Chief Executive Officer David B. Burritt said in a statement. Production currently at Great Lakes Works will be shifted to Gary Works in Indiana.
