All major steel companies in the U.S., such as US, Nucor (NUE), AK and Dynamics, have published their results for the first three quarters of the current year. The results were better compared to the same period in 2013. Most companies declared a significant increase in steel exports. This, combined with an increase in the average selling price, has led to higher profit margins for companies.
The EBITDA indicator (a company’s earnings before interest, taxes, depreciation and amortization) measures the profitability in the steel industry.
Please note that only the profits of ArcelorMittal’s North American operations were taken into account in this analysis. For other companies, we took the consolidated numbers. This is due to the fact that the other companies mainly have operations in the USA. For ArcelorMittal, North America represents about a quarter of its revenues.
As can be seen, the EBITDA margins for X, NUE, STLD, and AKS have improved compared to last year. For Arcelor, these margins have decreased. This is surprising given the general optimism shown in the US steel industry.
American have benefited from strong demand and higher steel prices. This has led to higher profit margins for most steel companies operating in the US.
Source: http://finance.yahoo.com/news/why-most-steel-companies-reported-130008137.html?soc_src=mediacontentsharebuttons&soc_trk=ma
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