Chesterton Tribune

 

 

US Steel posts 3Q profit of $291 million

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By KEVIN NEVERS

U.S. Steel Corporation (USS) is reporting net earnings in the third quarter of 2018 of $291 million or $1.62 per diluted share, compared to $214 million or $1.20 in the second quarter and $147 million or 83 cents in the year-ago period.

“Our third-quarter results were in line with our expectations, with a significant improvement in earnings from our flat-rolled segment and a return to profitability for our tubular segment,” USS President and CEO David Burritt said in a statement released today.

Outlook

“Market conditions remain solid, with stable end-user steel consumption,” Burritt said. “We experienced lower customer order rates for an extended period, driven by falling spot and index prices. However, we expect continued strength in steel demand will support favorable market conditions as we enter 2019.”

The company specifically expects flat-rolled “to continue to improve primarily due to increased shipments and lower maintenance and outage costs, partially offset by lower average realized prices.” USS also expects tubular to continue to improve--“despite a softening in the energy tubulars market”--due “to increased shipments, partially offset by lower average realized prices.”

3Q Numbers

* Flat-rolled segment earnings: $305 million (2Q $224 million, year-ago $161 million).

* U.S. Steel Europe earnings (USSE): $72 million (2Q $115 million, year-ago $73 million).

* Tubular earnings: $7 million (2Q loss of $35 million, year-ago loss of $7 million).

* Other business earnings: $16 million (2Q $17 million, year-ago $12 million).

* Average realize price net ton of flat-rolled: $859 (2Q $819, year-ago $728)

* Total USS and USSE shipments: 3.94 million net tons (2Q 3.94 million, year-ago 3.79 million).

* Flat-rolled capability at U.S. facilities: 68 percent (2Q 67 percent, year-ago 66 percent).

* Raw flat-rolled steel production at U.S. facilities: 2.93 million net tons (2Q 2.84 million, year-ago 2.82 million).

* Flat-rolled capital expenditures: $213 million (2Q $142 million, year-ago $134).

* Intersegment shipments of flat-rolled to tubular: 26,000 net tons (2Q 65,000, year-ago 43,000).

* Net sales: $3.72 billion (2Q $3.6 billion, year-ago $3.24 billion).

 

 

Posted 11/2/2018

 
 
 
 

 

 

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