Steel producer reports more than $880 million in net earnings in this year’s first quarter.
Pittsburgh-based United States Steel Corp. has reported first-quarter 2022 net earnings of $882 million, or $3.02 per diluted share. That compares with first-quarter 2021 net earnings of $91 million, or 35 cents per diluted share, representing a nearly 870 percent year-on-year increase.
“It was another quarter of records at U. S. Steel with the continued demonstration of the power of our ‘Best for All’ strategy,” says U. S. Steel President and CEO David B. Burritt. “The team’s stellar performance drove our best-ever first-quarter results, despite the challenging global dynamics that emerged throughout the quarter.”
Referring to the company’s Big River Steel electric arc furnace (EAF) mill in Arkansas and other scrap-melting EAF plants, Burritt comments, “Our minimill segment delivered 38 percent earnings before interest, taxes, depreciation and amortization (EBITDA) margins, outperforming both minimill and integrated peers.”
Looking ahead, Burritt comments, “We currently expect the second quarter to be the company’s all-time best second quarter as our balanced customer portfolio, raw materials integration and operating leverage is expected to expand adjusted EBITDA and support another quarter of strong EBITDA margin and cash generation. We believe U. S. Steel is well positioned to earn a significantly higher multiple as we demonstrate improved earnings performance, higher free cash flow, increasing direct returns to stockholders and outstanding leadership in innovation and research and development.”
The CEO says the company’s Best for All strategy remains viable. “Today’s geopolitical uncertainty and elevated raw material cost environment reinforces to customers the importance of steel that is mined, melted and made in the U.S.A. Our iron ore mines are a unique competitive advantage that cannot be easily replicated by other competitors. Additionally, we continue to progress on our sustainability goals and deliver the ‘green’ products our customers are increasingly demanding. We are also demonstrating our environmental, social and corporate governance (ESG) leadership. Earlier this year, Big River Steel became the first North American steel facility certified by [Australia-based] ResponsibleSteel. This is independent affirmation of our commitment to ESG excellence and sustainable processes and products.”
Washington port agency not pleased with pricing proposed by bidders for port crane dismantling job.
The Port of Vancouver in the state of Washington has rejected two initial bids it received to dismantle a port crane and a nearby structure.
The agency has chosen to delay the demolition project at its port’s Terminal 5 after receiving two bids, both substantially higher than its budgeted amount.
According to The Columbian website, based in Vancouver, Washington, the Port of Vancouver had asked for bids “to demolish the crane and gallery” after agency staff estimated the cost at around $1.3 million.
Subsequently, the agency received two bids each of which came in at more than $2 million. According to The Columbian, the bidders were from companies based in Ridgefield and Woodland, Washington.
Lower bids could result if the Port of Vancouver takes delivery of a “fender system” from South Korea designed to accommodate waterborne demolition equipment, says the website.
Equipment company says web tools serve its Lokotrack mobile crusher owners.
Finland-based Metso Outotec has launched what it calls the “next-generation” of its Metrics system designed to provide improved equipment performance and plant availability in the aggregates industry.
The aggregates crushing and screening equipment producer calls Metrics “an innovative cloud-based tool for real-time monitoring” for operators of its Lokotrack mobile crushers and screens.
“The new remote monitoring solution will bring significantly better connectivity and optimization benefits to aggregate customers’ crushing processes,” states the firm. It says Metrics has been developed together with distributors and customers and offers “several state-of-the-art features supporting customers to achieve their sustainability and operational targets.”
New Metrics features include: CO2 tracking for sustainability benefits; 24/7 access to real-time data; a maintenance module; and dashboards for features such as geolocation. The new Metrics also allows remote troubleshooting, with a user interface that can be “tailored to address different customer needs.”
“We wanted to develop a next-generation solution that will bring quantifiable value and deliver more production hours and tons to our customers,” says Merja Tyyni, a vice president with Metso Outotec. “The key to building sustainable operational efficiency is having the correct information to make decisions and select the right combination of services to lift the bar. Metso Outotec Metrics for aggregates connects mobile crushers and screens, providing increased real-time data visibility and analytics to improve availability, performance, reliability, and profitability,”.
The Metrics system is part of Metso Outotec’s Planet Positive portfolio, says the firm, which also makes production equipment for the metals industry. A new feature of Metrics in development is “integrated mass flow measurement for tracking production and waste to help customers quantify their production performance,” says the company.
“The new Metrics will enable us to take equipment features and customer experience to a new level by improving our customers’ equipment’s performance and increasing both uptime and the overall machine life-cycle,” says Kimmo Anttila, vice president of the Lokotrack line for the aggregates business at Metso Outotec.
Newer Lokotrack machines come equipped with Metso Outotec Metrics and legacy equipment can, in most cases, be retrofitted to integrate digital connectivity with a Retrofit Kit, according to the company.
The catch-up following the COVID-19 lull appears to have played out, says ABC’s economist.
The Washington-based Associated Builders and Contractors (ABC) and its Chief Economist Anirban Basu say the United States economy contracted at a 1.4 percent annualized rate during the first quarter of 2022 and that investment in nonresidential structures declined along with it.
According to ABC, the investment level in nonresidential construction fell at an annual rate of 0.9 percent during the first quarter and has contracted nine out of the past 10 quarters, ABC cites its own analysis of data released in late April by the U.S. Bureau of Economic Analysis for those observations.
“The economy’s woeful performance during 2022’s first quarter complicates matters,” says Basu. “Conventional wisdom says the economy has enough momentum to contend with the tighter monetary policy the Federal Reserve is pursuing to countervail inflation. Today’s data indicate that the economy is weaker than thought, which means the Federal Reserve will have a very difficult time curbing inflation without driving the economy into recession in late 2022 or 2023.”
Continues the economist, “That said, the economy should manage to generate some positive momentum during the next two to three quarters. Consumer demand for goods and services remains strong. The omicron variant affected the economy during the first quarter and that does not appear to be the case during the second. Global supply chains have been adjusting to the dislocations caused by the Russian-Ukraine war. Many state and local governments are flush with cash and continue to plan for a period of elevated infrastructure outlays.”
Basu points to one other potential “bit of good news.” Comments Basu, “The weakness exhibited by the economy during the first quarter may persuade monetary policymakers to raise interest rates less aggressively. This is a matter of significance for nonresidential contractors, who have become less confident in recent months, according to ABC’s Construction Confidence Indicator.”
Higher interest rates could make developers even less included to start a project, says Basu. “Investment in structures continues to decline in America, in part due to weakness in office, lodging and shopping mall segments. Presumably, additional rapid increases in borrowing costs would further dampen new construction in these categories. It may be that the Federal Reserve will raise interest rates more gradually than they would have knowing that the U.S. economy is already rather fragile.”
Generac has named Worx an exclusive dealer of the Dust Fighter 15000 and 20000.
C.W. Machine Worx, Carroll, Ohio, and Generac, Waukesha, Wisconsin, are partnering to offer customers a cost-effective dust suppression product. Generac recently named Worx as the exclusive distributor of the Dust Fighter 15000 and 20000 models in the United States. Both options will be available to rent or purchase through Worx’s dealer, Company Wrench.
The DF 15000 and DF 20000 are midsized units capable of reaching throw ranges of 150 and 200 feet. Both Dust Fighters are equipped with Generac generators and are mounted on trailers. Although the specifications are generally similar, the Dust Fighters weigh less than competitive models. This makes transporting dust suppression equipment to multiple job sites easier and more affordable,
Worx says it is no stranger to the Dust Fighter product. The company says it was the authorized Dust Fighter distributor 13 years ago when the product was owned by Tower Light. Worx stopped offering the Dust Fighter product to focus on manufacturing its own domestic dust suppression product line. After successfully introducing the Dust Destroyer to the market, Worx began exploring other ways to establish itself as the leader in dust suppression equipment and technology.
“All of our dust suppression products, including the DF 15000 and DF 20000, feature a wheelless base design,” says Hugh Gordon, Worx’s project manager. “Instead of using tricycle wheels, which can tip over if it’s top-heavy or stuck in a groove, Worx’s balanced trailer allows for increased stability and mobility.”
The company says reintroducing the DF 15000 and DF 20000 allows WORX to diversify its fleet with cost-effective options, which are appealing to a wider customer base.
For more information about the Dust Fighter, other dust suppression machines or custom fabrication services offered by Worx and Company Wrench, click here.