Steel, Oil and Gas Sectors Gain Momentum
CEOs who participated in a panel discussion about the economy at KeyBanc Capital Markets’ Industrials & Basic Materials Conference offered insights about sectors on the rise.
David Burritt, CEO of U.S. Steel, feels good about the current business cycle in general, adding that the company’s business in Europe is strong and stable. U.S. Steel’s tubular business, which is tied to the energy market and has experienced a rough period the past few years, is recovering. The company’s flat-rolled business in North America – with the automotive, consumer and industrial markets – is strengthening and expects to be stronger in the second half of 2018.
“We’re in a lot better position than we were a year ago, and we expect things to continue,” Burritt says.
KBR, an engineering, procurement and construction company, is emerging from the bottom of the oil and gas cycle. The company has experienced revenue growth for the first time in years — from the fourth quarter of 2017 to the first quarter of 2018 — and that growth is expected to continue, according to the company’s CEO, Stuart Bradie.
“The LNG (liquefied natural gas) market has more momentum than I’ve seen in the past four or five years,” Bradie says. “The momentum behind that sector is different compared to where it was even six months ago. We’re seeing quite a resurgence.”