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USS posts net loss in 2013 of $2 billion

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By KEVIN NEVERS

U.S. Steel Corporation (USS) is reporting a net loss in 2013 of $2.064 billion or $14.27 per diluted share, compared to a net loss in 2012 of $124 million or 86 cents.

In the fourth quarter of 2014 USS posted a net loss of $122 million or 84 cents per diluted share, compared to a net loss in the third quarter of $1.791 million or $12.38 and a net loss in the year-ago period of $50 million or 35 cents.

“We are on a multi-year journey to earn the right to grow by improving our balance sheet and achieving sustainable profitability,” USS CEO Mario Longhi said in a statement released on Monday. “Our fourth quarter results reflect our early efforts on this journey as all segments were profitable and, in total, we had an overall improvement in operating results compared to the third quarter.”

The full-year 2013 results include a net loss of $2.1 billion “primarily due to a non-cash goodwill impairment charge and non-cash restructuring and other charges,” the company said.

The fourth-quarter results include after-tax non-cash restructuring and other charges of $302 million or $2.09 per diluted share “primarily related to the shutdown of the iron and steelmaking facilities at Hamilton Works”; as well as a favorable tax-related item of $142 million or 98 cents.

Outlook

Longhi said that first-quarter 2014 results should reflect a “moderate” increase in income from reportable segments and other businesses.

In particular, results for flat-rolled are expected “to increase primarily due to higher average realized prices and shipments as well as reduced repairs and maintenance costs,” the company said. “Average realized prices and shipments are expect to increase as a result of higher contract and spot-market prices and improving end-user demand after the fourth-quarter holiday down time.”

“Repairs and maintenance costs are projected to decrease as compared to the fourth quarter due to the completion of projects at Gary Works and Fairfield Works,” USS added. “We will also have reduced idled facility costs after the shutdown of the iron and steelmaking facilities at Hamilton Works. Raw material costs, primarily for purchased scrap, and energy costs are expected to increase.”

2013/4Q Income from Operations

* Flat-rolled reported an income from operations in 2013 of $105 million ($400 million in 2012); and in the fourth quarter of $87 million ($82 million in the third quarter, $11 million in the year-ago).

* U.S. Steel Europe (USSE) reported an income from operations in 2013 of $28 million ($34 million in 2012); and in the fourth quarter of $12 million (a loss from operations of $32 million in the third quarter, an income of $7 million in the year-ago).

* Tubular reported an income from operations in 2013 of $190 million ($366 million in 2012); and in the fourth quarter of $32 million ($49 million in the third quarter, $32 million in the year-ago).

* Other businesses reported an income from operations in 2013 of $77 million ($55 million in 2012); and in the fourth quarter of $15 million ($14 million in the third quarter, $9 million in the year-ago).

* In 2013 the company posted a total loss from operations of $1.9 billion (an income from operations of $247 million in 2012). In the fourth quarter the company posted a loss from operations of $229 million, compared to a loss in the third quarter of $1.702 billion and an income in the year-ago of $5 million.

More Numbers

* The average realized price per net ton of flat-rolled in 2013 was $735, compared to $750 in 2012.

* USS and USSE shipped 20.4 million net tons in 2013, compared to 21.67 million in 2012.

* Flat-rolled raw steel capability for U.S. facilities in 2013 was 86 percent, compared to 86 percent in 2012.

* USS reported net sales of $17.424 billion in 2013, compared to $19.328 billion in 2012.

* Flat-rolled capital expenditures were $349 million in 2013, compared to $625 million in 2012.

* As of Dec. 31, 2013, USS had $604 million in cash and $2.3 billion in total liquidity.

 

Posted 1/28/2014