Source: U.S. Department of Commerce
Cold-Rolled
|
| | | | |
| | Countervailing Duties | | Antidumping Duties |
Country | | Final | | Final |
| July 14/Sept. 20, 2016 | | July 17/Sept. 20, 2016 |
Brazil | | 11.09 - 11.31% | | 19.58 - 35.43% |
China | | 256.44% | | 265.79% |
India | | 10.00% | | 7.60% |
Japan | | --- | | 71.35% |
Korea | | 3.91 - 59.72% | | 6.32 - 34.33% |
Russia1 | | --- | | --- |
United Kingdom | | --- | | 5.40 - 25.56% |
Source: U.S. Department of Commerce
Hot-Rolled
|
| | | | |
| | Countervailing Duties | | Antidumping Duties |
Country | | Final | | Final |
| October 3, 2016 | | October 3, 2016 |
Australia | | --- | | 29.58% |
Brazil | | 11.09 - 11.30% | | 33.14 - 34.28% |
Japan | | --- | | 4.99 - 7.51% |
Korea | | 3.89 - 58.68% | | 3.89 - 9.49% |
Netherlands | | --- | | 3.73% |
Turkey | | ---2 | | 3.66 – 7.15% |
United Kingdom | | --- | | 33.06% |
Source: U.S. Department of Commerce
1 In its final phase investigation, the ITC issued a negative injury determination against Russia. Thus, no AD or CVD Orders were issued against Russia. The DOC’s final countervailing duty rates for Russia were between 0.62 (de minimis) - 6.95% and the final antidumping duty rates for Russia were between 1.04 (de minimis) - 13.36%.
2 In its final phase investigation, the ITC found that imports of hot-rolled steel that were found to be subsidized by the government of Turkey were negligible. Therefore, no CVD order was issued against Turkey.
General
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17. | Your stock price has been very volatile. Why is this so and what are you doing to reduce the impact of cyclicality on your results? |
The global steel industry is a cyclical industry and steel selling prices can change fairly quickly. Our operating configuration has significant leverage to steel selling price and volume changes to both the upside and the downside, resulting in significant earnings volatility on a quarter-to-quarter basis. The volatility of our earnings is also affected by the consistency and reliability of our operations. One objective of our Carnegie Way transformation is to create a lower and more flexible cost structure, as well as more flexible and reliable operations in order to mitigate the financial impact of this volatility.
Our asset revitalization program is a comprehensive investment plan with a continuous focus on improving safety, quality, delivery and costs. As we revitalize our assets, we expect to increase profitability, productivity, operational consistency, and reduce volatility.
While we cannot control or reduce the cyclicality of the global steel industry, we can control our costs and create a more flexible business model that will produce stronger and more consistent results across industry cycles.
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18. | Is the Carnegie Way just a cost cutting initiative? |
No - it is much more than a cost cutting initiative, improving all our core business processes, including commercial, manufacturing, supply chain, procurement, innovation, and functional support. Carnegie Way is our culture and the way we run the business. We focus on our strengths and how we can create the most value for our stockholders and best serve our customers.
We have achieved sustainable cost improvements that enable us to better serve our customers and reward our stakeholders. Additionally, if we find that changes cannot be implemented and value cannot be created for our customers and stockholders, we exit those underperforming areas. Opportunities are greatest where we make money for our stockholders and our customers. When we deliver value, we can provide good jobs and benefits to our employees and help support the communities in which we do business.
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19. | You have mentioned that there is increased focus on earning economic profit. What is the definition of economic profit? |
The term profit typically refers to any positive income for a business enterprise. Economic profit has a higher threshold and refers to income in excess of an enterprise’s weighted average cost of capital, which includes the cost of equity as well as the cost of debt. Economic profit is true value creation as it provides stockholder returns above the weighted average cost of capital.