United States Steel Corp. (X) on Tuesday reported a loss for the first quarter that widened from last year, as higher revenues were offset by a loss on sale of the company's Serbian business. Excluding the loss on sale, the company reported an adjusted profit for the quarter, while revenues beat analysts' estimates.
The company's steel shipments declined in the quarter, while flat-rolled and tubular steel prices rose from last year.
Steel shipments for the quarter totaled 5.67 million tons, down 2.6 percent from 5.82 million tons last year. Shipment increase was seen at flat-rolled and tubular segments, while it declined at U.S. Steel Europe.
Tubular segment prices rose 19.4 percent to $1,727 per ton, while flat-rolled prices increased 6.1 percent to $764 per ton.
John Surma, U. S. Steel Chairman and CEO said, "Our Tubular segment had another strong performance reflecting the continued strength of oil-directed drilling. U. S. Steel Europe results, excluding the loss on the sale of U. S. Steel Serbia, improved but continue to reflect the challenging economic situation in the region."
Looking ahead, the company expects total segment results for the second quarter to be consistent with the first quarter.
U.S. Steel's first-quarter net loss was $219 million or $1.52 per share, wider than net loss of $86 million or $0.60 per share in the year-ago period.
The latest quarter results include a loss of $399 million on sale of U.S. Steel Serbia, an after-tax gain of $58 million on the sale of transportation assets, and an after-tax gain of $12 million on property tax settlements.
Adjusted net income for the latest quarter was $110 million or $0.67 per share. On average, sixteen analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter rose 6.4 percent to $5.17 billion from $4.86 billion in the prior-year quarter and topped analysts' consensus estimate of $4.95 billion.
Looking ahead to the second quarter, CEO Surma said, "We expect all three of our operating segments to reflect positive results from operations with total segment results consistent with the first quarter."
U.S. Steel expects the European segment to return to positive income from operations reflecting improved average realized prices. The company expects the tubular segment to perform well with results similar to the first quarter, while the flat-rolled segment results are expected to decrease due primarily to higher maintenance costs.
In Tuesday's session, X is trading at $27.85, down $0.37 or 1.31 percent on a volume of 1.08 million shares.
by RTT Staff Writer
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