U.S. Steel Extends Its Transformation Amid a Challenging Market


Mar. 27 2015, Updated 10:19 a.m. ET

U.S. Steel’s transformation

U.S. Steel Corporation (X) is the second-largest steel company headquartered in the US. It was the largest steel company in the United States until last year. Now, that distinction lies with Nucor (NUE). Last year, Nucor bought Gallatin Steel to become the largest steel company in the US.

U.S. Steel has been around for more than a decade. When it was founded in 1901, its authorized capital was a whopping $1.4 billion and it was the largest business enterprise ever launched. It accounted for 67% of total steel produced in the US in its very first year of full operation. It has been a symbol of the United States’ rise and then decline in industrial production.

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What do we cover?

U.S. Steel has an iconic past, but it has lost a lot of its sheen in the last few years. However, it’s working on a transformation program named after its founder, Andrew Carnegie, to work on sustainable profitability. In this series, we’ll discuss some recent developments in U.S. Steel’s transformation.

Over the last few months, U.S. Steel’s share price has been quite volatile on Wall Street. You can see this trend in the chart above. Currently, the company forms 3.24% of the SPDR S&P Metals and Mining ETF (XME). Timken Steel (TMST) and Carpenter Technology (CRS) each form 3.3% of XME.


U.S. Steel has faced several challenges following the global recession. Some of these challenges were due to difficult markets, while some related to the company’s core operations. Before we can understand how U.S. Steel is transforming its operations, it’s worthwhile to learn the challenges the company faces. We’ll discuss these challenges in detail in our next part of this series.


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