(RTTNews) - United States Steel Corp. (X: News ) 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."

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