United States Steel Corp. (X) reported a loss for the first quarter that narrowed from last year. However, revenues for the quarter declined, hurt by lower prices for steel and reduced shipments. Adjusted loss was wider than analysts' expectations, while revenues missed their estimates.
Looking ahead, the company forecast lower second-quarter results at its biggest unit, flat-rolled steel.
U.S. Steel, like others in the industry, has been grappling with over-capacity as well as imports from China, which is the world's biggest steel producer and consumer. The Pennsylvania-based steelmaker's first-quarter net loss narrowed to $73 million or $0.51 per share from $219 million or $1.52 per share in the year-ago period.
The latest quarter's results include an after-tax charge of $22 million or $0.16 per share related to repurchases of $542 million principal amount of 4.00 percent senior convertible notes due 2014, reducing the outstanding principal amount for these notes to $321 million.
Adjusted net loss for the quarter was $51 million or $0.35 per share, compared to adjusted net income of $110 million or $0.67 per share in the previous-year quarter. On average, 16 analysts polled by Thomson Reuters expected the company to report loss of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter decreased 11 percent to $4.60 billion from $5.17 billion in the same period last year. Analysts had a consensus revenue estimate of $4.66 billion.
Total steel shipments for the quarter declined 3 percent to 5.49 million tons from 5.67 million tons in the year-ago period.
Total operating expenses for the quarter were $4.56 billion, down 13 percent from $5.25 billion in the year-ago period.
Segment loss from operations for the flat-rolled segment in the quarter was $13 million, compared to segment income from operations of $183 million in the same period last year.
Total reportable segment and other businesses income from operations declined to $94 million, or $17 per ton, from $295 million, or $52 per ton, in the previous-year quarter.
Looking ahead to the second quarter, John Surma, U. S. Steel Chairman and CEO said, "We expect total reportable segment and Other Businesses operating results to be near breakeven. Results for our Tubular segment are projected to be comparable with the first quarter; however we expect lower results from our Flat-rolled and European segments."
In Tuesday's regular session, X is trading at $17.30, down $0.24 or 1.37 percent on a volume of 4.65 million shares.
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