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U.S. Steel CEO: Layoff notices nationwide rise to 9,000 - All Obama's fault!!!

By zzyzzx follow zzyzzx   2015 Apr 30, 10:45am 6,637 views   19 comments   watch   nsfw   quote   share    


http://www.nwitimes.com/business/local/u-s-steel-ceo-layoff-notices-nationwide-rise-to/article_2545ab4b-393d-5462-a4e3-d5f6885f7e93.html

GARY | U.S. Steel has idled a blast furnace at Gary Works and now issued layoff warnings to about 9,000 workers nationwide....

The company employs about 35,000 workers globally under normal operating conditions.

So far this year, the Pittsburgh-based steelmaker has laid off 2,800 workers across the county, including at Gary Works and the idled East Chicago Tin. Production has been cut at all its North American plants because the demand for steel is so low.

CEO Mario Longhi warned more layoffs could be coming amid a record glut of foreign imports and after a worse-than-expected first-quarter loss analysts called "ugly."

He blamed cheap oil and imports.

"Our order rates have been significantly impacted by high levels of imports into the North America market that have continued unabated, resulting in operating levels that have caused us to lay off a significant number of our employees and will likely result in the number of layoffs increasing going forward," Longhi said. "We are attacking every aspect of our cost structure and exercising every opportunity that we have to eliminate, reduce and defer costs. We have many cost levers that we can pull in response to a downturn in market conditions and we are pulling them as quickly and as hard as we can."

U.S. Steel has cut back operations at eight plants, resulting in an estimated $200 million of annualized cost savings. Blast furnaces have been idled at Gary Works, Fairfield in Alabama and Granite Works in Illinois. East Chicago Tin sits idled. The coke plant at Gary Works has been shut down for good.

"We've taken aggressive and decisive actions to address the extremely challenging conditions we are currently facing in North America," Longhi said. "Some of these are very difficult decisions that have a significant impact on our employees and their families, and we do not take these lightly. But these are some of the actions that are necessary for us to remain well positioned to respond when the market conditions improve."

Over the first three months of the year, the steelmaker lost $75 million, or 52 cents a share, after net sales plummeted by 26 percent. U.S. Steel had turned a profit of $52 million in the first quarter of 2014, which was its first profitable year in a half decade.

"We faced extremely difficult conditions in the first quarter with high levels of imports and supply chain inventories and rapidly falling spot prices and rig count significantly impacting volumes at both our flat rolled and tubular segments," Chief Financial Officer David Burritt said.

The company expects to cut operating expenses by at least $340 million this year, through projects such as reducing inventory and freight costs that are part of the ongoing Carnegie Way initiative to make U.S. Steel profitable in good times and bad. That figure does not include the $200 million U.S. Steel expects to save from layoffs and idlings, which Longhi said would be temporary.

"I would like to emphasize that these are the result of short-term actions that will reverse eventually as we return to normal operating levels and bring our people back to work," Longhi said. "These cost reductions are in addition to the sustainable improvements to our business model resulting from our Carnegie Way transformation."

After taking a beating in the first quarter, U.S. Steel lowered its guidance for 2015 adjusted earnings before interest and taxes down from $550 million to $850 million to a much lower range of $115 million to $315 million. U.S. Steel executives cited increased headwinds, including much lower prices for flat-rolled products than anticipated, historically high imports and a steep plunge in the demand for steel for drilling rigs.

The steelmaker expects market conditions will improve in the second half of the year, but continues to suffer from a glut of imports that have captured a record 34 percent market share.

"Our flat-rolled segment results continue to be adversely impacted by the mass of steel imports that accelerated during the first quarter, many of which we believe are unfairly traded," General Manager of Investor Relations Dan Lesnak said.

#politics

1   NoCoupForYou   ignore (6)   2015 Apr 30, 10:59am     ↓ dislike (1)   quote   flag        

zzyzzx says

CEO Mario Longhi warned more layoffs could be coming amid a record glut of foreign imports and after a worse-than-expected first-quarter loss analysts called "ugly."

He blamed cheap oil and imports.

Tariffs, tariffs, tariffs. Those who go abroad for products, pay extra. Sounds fair to me.

As Abe Lincoln said (paraphrased), "When we buy it abroad, they get the money and we get the goods. When we make it at home, we get the goods AND we get the money."

2   HEY YOU   ignore (8)   2015 Apr 30, 11:01am     ↓ dislike (3)   quote   flag        

U.S. Steel should simply move all production overseas for cheap cost since the Rep/Con/Teas have done nothing to stop outsourcing or trade deals that hurt American workers.
Right's motto: Fuck American people, except those "Corporations are people too".

3   EBGuy   ignore (1)   2015 Apr 30, 11:43am     ↓ dislike (0)   quote   flag        

High oil prices are good for everyone -- until someone starts to take your market share. The Saudi's are at war with American producers.
“The Saudis are pumping aggressively because they need to because of the price drop, for political expediency and to take out the frackers at the knees,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone.

4   NoCoupForYou   ignore (6)   2015 Apr 30, 1:00pm     ↓ dislike (0)   quote   flag        

EBGuy says

High oil prices are good for everyone -- until someone starts to take your market share. The Saudi's are at war with American producers.

“The Saudis are pumping aggressively because they need to because of the price drop, for political expediency and to take out the frackers at the knees,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone.

I thought this might have been an anti-Russian move, but it isn't. It's definitely aimed at the US and Canada. Frackers will be going out of business left and right, many already have, unless oil jumps up.

I wonder how many "Buy Iraqi Dinars, Gold bugs, Stock up on Ammo" Guys invested heavily in North Dakota real estate.

5   tatupu70   ignore (0)   2015 Apr 30, 2:07pm     ↓ dislike (1)   quote   flag        

thunderlips11 says

As Abe Lincoln said (paraphrased), "When we buy it abroad, they get the money and we get the goods. When we make it at home, we get the goods AND we get the money."

It's so simple--not sure how everyone doesn't see this.

6   Entitlemented   ignore (0)   2015 Apr 30, 4:53pm     ↓ dislike (0)   quote   flag        

Whats really concerning about this, is that the very smartest and innovative people are loosing middle class jobs.

My middle class roots really feel this, and I have that this new NAFTA like agreement with Asia does not finish off the remainder of the Middle Class Jobs

http://www.salon.com/2012/06/14/trans_pacific_partnership_larger_than_nafta/

I hope that Democrat/Republican can confront the Foreign Lobbyists that are profiting from this. For any political persuasian, the 1% are tied to the lobbying class, who have dont this.

7   Tenpoundbass   ignore (16)   2015 Apr 30, 4:55pm     ↓ dislike (2)   quote   flag        

CaptainShuddup says

Cheap Oil is no reason for Steel layoffs. If Oil rigs is the only thing we can think of to do with Cheap Oil and an idle workforce, then Dog help us all.

anonymous says

how do you think they get that oil out of the ground, with plastic straws?

8   Tenpoundbass   ignore (16)   2015 Apr 30, 5:00pm     ↓ dislike (2)   quote   flag        

anonymous says

Cheaper gasoline was supposed to turbocharge the U.S. economy,

Nothing will super charge the ecconomy as long as the Secret QA printing press is running in the backroom, and the winners and losers are decided in Washington.
Guess what, the working class is not the winners. Sure we're spending less money on gas, but we're not making more money to spend on other things, we're not being rewarded for saving.
Any relief cheap Oil and gas has brought has been met with higher rent, higher insurance premiums(not limited to healthcare premiums), higher interest rates on mortgages, higher food prices and everything else.

Fuck everyone that had anything to do with high Oil, we don't need Steel workers if it means a levied VAT tax in the form of out of control gas and energy prices. Fuck EM!!!

9   Tenpoundbass   ignore (16)   2015 Apr 30, 5:01pm     ↓ dislike (2)   quote   flag        

Just hold the line until Rand Paul gets elected.

10   BlueSardine   ignore (3)   2015 May 1, 6:37am     ↓ dislike (0)   quote   flag        

Interesting....
Libbys believe all americans are born with original sin (slavery)
TeaCons believe everybody is born with original sin ( religious )
is there not a sinless soul on the planet??

anonymous says

Everyone is responsible for their own actions no one else.

11   komputodo   ignore (2)   2015 May 1, 7:53am     ↓ dislike (0)   quote   flag        

anonymous says

"So far cheap oil hurting economy more than it’s helping" WASHINGTON (MarketWatch) — Cheaper gasoline was supposed to turbocharge the U.S. economy, but it appeared to do more harm than good in the first three months of 2015.

So the "experts" got this wrong again and now we're supposed to believe that expensive gasoline will turbocharge the U.S. economy?

12   HydroCabron   ignore (1)   2015 May 1, 8:39am     ↓ dislike (2)   quote   flag        

Call it Crazy says

anonymous says

Cap'n - ever hear of this? Personal responsibility is the choices and obligations we make in life. Everyone is responsible for their own actions no one else. We all must have good character, moral values and a healthy lifestyle in order to accept personal responsibility. Once we use our good character and moral values to help us know what is right and wrong, it is up to us to be responsible and make the right decisions. Also promoting a healthy life style show you are responsible mentally, physically and emotionally. All in all, once we accept the fact that we are the only ones who can change our lives by making good choices, we have accepted personal responsibility!

You do know, there are a few Lefties on Patnet that would disagree with that paragraph...

Plus, you and socal2 feel that socal2 has no choice but to defend violent cops, because liberals.

13   HydroCabron   ignore (1)   2015 May 1, 11:29am     ↓ dislike (0)   quote   flag        

Call it Crazy says

There's one of them...

Ha ha ha... THAT'S INTERESTING!!!

But it's over Elmo's head... reading comprehension issues??

I totally agree!!

14   HydroCabron   ignore (1)   2015 May 1, 11:32am     ↓ dislike (0)   quote   flag        

Call it Crazy says

"You didn't build that"

Bingo!!

This guy gets it...

15   Tenpoundbass   ignore (16)   2015 May 2, 11:09am     ↓ dislike (0)   quote   flag        

Save it you're going to need that condescending reassuring tone for the disillusioned undocumented unemployed ex-Obama voters.

16   Tenpoundbass   ignore (16)   2015 May 2, 11:46am     ↓ dislike (0)   quote   flag        

thunderlips11 says

Frackers will be going out of business left and right, many already have, unless oil jumps up.

IF anyone really believes that we need to keep Oil artificially inflated not only so Green energy can get a leg up, but also we ensure that the most destructive producers of Oil(and apparently in a time when the excess Oil produced by the hazardous way of producing it, isn't even needed) in business.

Then what is the End game, do those Morons have even have one? Or does ethical politics give way to equitable politics.


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