U.S. Steel Corporation (USS) is reporting a net loss of $157 million or
$1.10 per diluted share in the first quarter of 2010, compared to a loss of
$267 million or $1.86 million in the fourth quarter of 2009 and a loss of
$439 million or $3.78 per diluted share in the year-ago period.
“We reported a significantly reduced overall loss from operations in the
first quarter 2010 as compared to the fourth quarter 2009, mainly due to
improving business conditions and a strong operating performance for our
flat-rolled segment,” USS Chair and CEO John Surma said in a statement
released today. “In Europe, we returned to profitability and our tubular
segment has another strong quarter.”
“We anticipate being profitable in all three of our operating segments in
the second quarter of 2010 as gradually improving business conditions should
be reflected in our operating results, most notably for our flat-rolled
segment,” Surma said. “We continue to experience healthy order rates from
most of our markets, resulting in increased production levels.”
“In North America, reported inventories in key end markets, such as
automotive and service centers, remain below historical averages, as do
flat-rolled product imports,” Surma added. “In Europe, imports have also
remained below historical averages and reported inventories remain low
across our end markets.”
“Our tubular segment is also benefiting from both increased order rates,
particularly for small diameter alloy oil country tubular goods (OCTG), and
a continuing steady decline in reported U.S. OCTG inventory levels from the
record highs of early 2009,” Surma noted.
“In summary, we remain cautiously optimistic in our outlook for end user
demand for all three of our operating segments in line with a gradual and
continuing economic recovery,” Surma said.
for the Second
USS is anticipating flat-rolled results specifically to improve in the
second quarter. “The benefits of increases in average realized prices,
higher trade and intersegment shipments, and lower energy costs are expected
to be only partially offset by higher raw material costs (mainly scrap and
coke) and increased facility repair and maintenance costs, including
facility restart costs at Lake Erie Works,” the statement said. “Average
realized prices are expected to benefit from increases in both spot- and
index-based contract prices, which now reflect higher published market-price
assessments. We expect to complete the restart at Lake Erie Works late in
the second quarter. Our remaining steelmaking facilities are expected to
operate for the entire quarter.”
1Q Income from
•Flat-rolled reported a loss from operations of $80 million, compared to a
loss of $284 million in the fourth quarter and a loss of $422 million in the
•U.S. Steel Europe (USSE) reported an income from operations of $12 million,
compared to a loss of $3 million in the fourth quarter and a loss of $159
million in the year-ago period.
•Tubular reported an income from operations of $45 million, compared to an
income of $39 million in the fourth quarter and an income of $127 million in
the year-ago period.
•Other businesses reported an income from operations of $10 million,
compared to an income of $3 million in the fourth quarter and a loss of $3
million in the year-ago period.
•Total segment loss from operations was $13 million, “essentially break-even
on a per-ton basis,” compared to the segment loss of $245 or $53 per ton in
the fourth quarter and $457 million or $142 per ton in the year-ago period.
•Total loss from operations was $57 million, “a significant improvement from
the fourth quarter loss of $329 million, primarily driven by flat-rolled
segment performance,” the company said.
More 1Q Numbers
•The average realized price per net ton for flat-rolled was $654, compared
to $633 in the fourth quarter and $715 in the year-ago period.
•USS and USSE shipped a total of 5,404 net tons, compared to 4,654 in the
fourth quarter and 3,227 in the year-ago period.
•USS reported net sales of $3.896 billion, compared to $3.354 billion in the
fourth quarter and $2.750 in the year-ago period.
•The company reported a “strong liquidity position” with $1.4 billion in
cash and $2.9 billion in total liquidity.