Chesterton Tribune

 

 

US Steel posts 1Q profit of $52 million

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By KEVIN NEVERS

U.S. Steel Corporation (USS) is reporting a net income in the first quarter of 2014 of $52 million or 34 cents per diluted share, compared to a net loss in the fourth quarter of $270 million or $1.75 and a net loss in the year-ago period of $73 million or 51 cents.

“We are pleased to report an improvement in our first-quarter operating results despite extreme weather-related issues,” USS President and CEO Mario Longhi said. “Higher natural gas prices and operational issues due to the weather were offset by better commercial prices and Carnegie Way benefits.”

Outlook

“We expect reduced income from operations in the second quarter,” Longhi said. “We expect our production to be limited, which will temporarily slow shipments primarily due to continued weather-related logistical issues affecting our raw materials and finished products.”

“We expect to report a loss for our flat-rolled segment in the second quarter,” USS said. “The operational difficulties described above are projected to temporarily limit our production capabilities, resulting in a reduction in our shipments and high operating costs as compared to first quarter.”

“Market conditions in North America are improving,” USS also said. “However, average realized prices are projected to be comparable to the first quarter. Given our production disruptions, second-quarter shipments will be geared to fulfilling contract commitments where prices are not moving at the same rate as the spot market, as well as negatively influenced by lower automotive coated production and shipments this quarter. We expect to have the operational difficulties largely behind us as we exit the second quarter.”

1Q Income from Operations

* Flat-rolled reported an income from operations of $85 million, compared to $87 million in the fourth quarter and a loss from operations of $13 million in the year-ago.

* U.S. Steel Europe (USSE) reported an income from operations of $32 million, compared to $12 million in the fourth quarter and $38 million in the year-ago.

* Tubular reported an income from operations of $24 million, compared to $32 million in the fourth quarter and $64 million in the year-ago.

* Other businesses reported an income from operations of $13 million, compared to $15 million in the fourth quarter and $5 million in the year-ago.

* Total income from operations was $122 million, compared to a total loss from operations in the fourth quarter of $229 million and a total income from operations in the year-ago of $38 million.

More 1Q Numbers

* The average realized price per net ton of flat-rolled was $761, compared to $750 in the fourth quarter and $719 in the year-ago.

* USS and USSE shipped 5.124 million net tons, compared to 4.913 million in the fourth quarter and 5.494 in the year-ago.

* Flat-rolled raw steel capability for U.S. facilities was 81 percent, compared to 73 percent in the fourth quarter and 82 percent in the year-ago.

* USS reported net sales of $4.448 million, compared to $4.269 million in the fourth quarter and $4.595 million in the year-ago.

* Flat-rolled capital expenditures were $55 million, compared to $101 million in the fourth quarter and $96 million in the year-ago.

* As of March 31, USS had $1.1 billion in cash and $2.7 billion in total liquidity, compared to $604 million in cash and $2.3 billion in total liquidity as of Dec. 31, 2013.

 

Posted 4/30/2014