United States Steel Corp. (X) reported Tuesday a net loss in its third quarter, compared to prior year's profit, reflecting plunge in shipments amid weak demand. Net sales for the quarter fell 61.4%, yet beat market projections. Looking ahead, the Pittsburgh, Pennsylvania-based steel manufacturer said it expects improvement in overall fourth quarter results on higher demand, but would post an operating loss.
Third-quarter net loss attributable to the company was $303 million or $2.11 per share, compared to net income of $919 million, or $7.79 per share, in the third quarter of 2008.
On average, 12 analysts polled by Thomson Reuters expected the company to report a loss of $2.87 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that net interest and other financial costs in the third quarter of 2009 included a foreign currency gain that increased net income by $24 million, or $0.16 per share, resulted from the remeasurement of an $828 million U.S. dollar-denominated intercompany loan to a European affiliate, partially offset by losses on euro-U.S. dollar derivatives activity. This compares to a foreign currency loss that decreased net income by $39 million or $0.33 per share in the third quarter of 2008.
In its preceding second quarter, the company incurred a net loss attributable to U.S. Steel of $392 million or $2.92 per share, compared to prior year's net income, reflecting significantly lower demand and prices for steel and related products amid the continuing global recession.
Net sales for the quarter plunged to $2.82 billion from $7.31 billion in the prior year quarter, yet beat seven Wall Street analysts' consensus estimate of $2.72 billion for the quarter. On a sequential basis, net sales grew 32% from $2.13 billion recorded in the second quarter.
Total steel shipments in the quarter fell to 4.16 million tons, down from last year's 6.43 million tons, but up 41% from 2.94 million tons in the second quarter.
Commenting on results, U. S. Steel Chairman and Chief Executive Officer John Surma said, "Shipment volumes and operating rates for all of our reportable segments increased significantly from the very low levels of the second quarter as we brought several idled facilities online to satisfy increased customer order rates. Our European and Tubular segments had improved financial performance and our Flat-rolled segment's results were in line with the prior quarter despite the effects of continued low operating rates and facility restart costs."
The company reported a third quarter 2009 loss from operations of $412 million, compared with income from operations of $1.33 billion in 2008. Total segment loss from operations was $379 million, or $91 per ton, compared to prior year's income of $1.46 billion, or $227 per ton.
Loss from operations in the Flat-rolled segment was $370 million, compared to last year's income of $846 million. U. S. Steel Europe, or USSE's income from operations was $7 million, down from $173 million last year, and Tubular recorded a loss from operations of $21 million, compared to prior year's income of $420 million.
Among other players in the field, AK Steel Holding Corp. (AKS) reported Tuesday that its third-quarter net income attributable to the company fell to $6.2 million or $0.06 per share from last year's $188.3 million or $1.67 per share. Net sales for the third quarter were $1.04 billion on shipments of 1,047,800 tons, compared to sales of $2.16 billion on shipments of 1,476,300 tons for the year-ago quarter.
Nucor Corp. (NUE) last Thursday posted a third-quarter net loss of $29.54 million or $0.10 per share, compared to a profit of $734.59 million or $2.31 per share a year ago, impacted negatively by high-cost pig iron inventories as well as sharp declines in shipments and average sales prices. Net sales plunged 58% to $3.12 billion from $7.45 billion in the third quarter of fiscal 2008.
Another peer, Arcelor Mittal (MT) will publish its third-quarter results on Wednesday, October 28, as analysts are looking for a loss of $0.06 per share, on revenues of $16.30 billion, compared to last year's earnings of $2.78 per share and revenues of $35.20 billion. For the third quarter, ArcelorMittal expects EBITDA to be between $1.4 billion and $1.8 billion, and shipments to be slightly higher than in the second quarter, while average steel selling prices are projected to remain stable or slightly lower. In addition, the company expects additional cost benefits from raw material cost reductions in the third quarter.
For the nine months of fiscal 2009, United States Steel's net loss attributable to the company was $1.13 billion or $8.62 per share, compared to prior year's income of $1.82 billion or $15.43 per share. Net sales for the period more than halved to $7.69 billion from $19.25 billion last year.
Looking ahead, Surma said, "We expect improvement in our overall fourth quarter results mainly as a result of increased demand for Flat-rolled products in North America, driven primarily by automotive markets and continued strength in tin mill markets. However, we expect to report an overall operating loss in the fourth quarter due primarily to continued low operating rates and idled facility carrying costs for our Flat-rolled and Tubular segments. We remain cautious in our outlook for end user demand as customer order rates in Flat-rolled and U. S. Steel Europe have decreased from the third quarter, partly due to seasonal slowdowns, and we will continue to adjust production to meet our customers' demand." According to Surma, U.S. and global economies are believed to be in the early stages of a gradual recovery, despite concerns and uncertainties, aided by global stimulus policies, and may be supported by continued improvement in credit markets and inventory restocking.
For the fourth quarter, results for Flat-rolled segment are expected to improve somewhat sequentially, due primarily to higher average realized prices and increased shipments. But, the company projects a segmental operating loss for the quarter mainly due to low operating rates and continued carrying costs for idled facilities.
USSE is projected to generate results in line with the third quarter as higher average realized prices are offset by higher raw material costs and slightly lower shipments. Fourth-quarter results for Tubular are expected to be comparable to the third quarter as operating levels, shipments and prices remain around prior quarter levels and we continue to incur carrying costs for idled facilities, the company noted.
United States Steel shares, which have been trading between $16.66 and $51.65 in the past 52 weeks, closed Monday's trading session at $40.58, down $0.29 or 0.71%, on a volume of 11.9 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.