Chesterton Tribune

 

 

USS posts another quarterly net loss

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By KEVIN NEVERS

U.S. Steel Corporation (USS) has reported a net loss in the second quarter of $78 million or 54 cents per diluted share, compared to a net loss in the first quarter of $73 million or 51 cents and a net income in the year-ago period of $101 million or 62 cents in the year-ago period.

“Total reportable segment and Other Businesses operating results of $47 million reflect the effects of the ongoing lockout at our Lake Erie Works and a deceleration in global economic growth during the quarter,” USS Chair and CEO John Surma said in a statement released on July 29. “Our plants operated well even with increased repairs and maintenance costs.”

USS is projecting improved results from operations for its flat-rolled segment “based on an increase in average realized prices, lower raw material costs, and lower repairs and maintenance costs partially offset by reduced shipments.”

Average realized prices for flat-rolled “are expected to increase compared to the second quarter due to increased spot-market prices as well as a more favorable product mix,” but shipments are anticipated to “decrease significantly due to a blast-furnace outage at our Great Lakes Works and the Lake Erie Works labor dispute,” USS said.

On July 31, United Steelworkers Local 8782, representing members at Lake Erie Works, voted to reject the company’s contract offer.

2Q Income from Operations

*Flat-rolled reported a loss from operations of $51 million, compared to a loss in the first quarter of $13 million and an income in the year-ago of $177 million. USS cited increased operating costs due to higher repairs and maintenance costs as well as higher natural gas costs, partially offset by lower raw materials costs. Shipments also decreased, due to the maintenance projects and the Lake Erie Works lockout. The company incurred around $70 million in idle facility carrying costs at the Hamilton and Lake Erie operations during the second quarter.

*U.S. Steel Europe (USSE) reported an income from operations of $10 million, compared to $38 million in the first quarter and $34 million in the year-ago.

*Tubular reported an income from operations of $45 million, compared to $64 million in the first quarter and $103 million in the year-ago.

*Other businesses reported an income from operations of $43 million, compared to $5 million in the first quarter and $16 million in the year-ago.

More 2Q Numbers

*The average realized price per net ton of flat-rolled was $725, compared to $719 in the first quarter and $772 in the year-ago period.

*USS and USSE shipped 5.246 million net tons, compared to 5.494 million in the first quarter and 5.434 million in the year-ago.

*Flat-rolled raw steel capability was 70 percent, compared to 82 percent in the first quarter and 77 percent in the year-ago.

*USS reported net sales of $4.429 billion, compared to $4.595 billion in the first quarter and $5.017 billion in the year-ago.

*Flat-rolled capital expenditures were $80 billion, compared to $96 billion in the first quarter and $186 billion in the year-ago.

*As of June 30, USS had $767 million in cash and $2.5 billion in total liquidity, compared to $733 million in cash and $2.5 billion in total liquidity on March 31.

 

 

 

Posted 8/6/2013