Tags: US | Earns | US | Steel

U.S. Steel Reports Loss, Sees Another Coming

Tuesday, 26 Jan 2010 10:02 AM

U.S. Steel reported a steep loss for the fourth consecutive quarter as sales fell sharply and the company said Tuesday it expects that trend to continue this quarter.

Shares tumbled nearly 9 percent, or $4.89, to $51.34.

Orders from auto and appliance makers are starting to come back, but those improvements are not yet fully reflected in operating results.

Steel prices have edged up from their lowest point seen during the recession. Still, like other manufacturers, Chairman and CEO John Surma has been cautious during a recovery that may take some time.

The Pittsburgh manufacturing giant reported a fourth-quarter loss of $267 million, or $1.86 per share, compared with earnings of $290 million, or $2.50 per share, during the same period last year.

Revenue declined 26 percent to $3.35 billion, from $4.5 billion in the prior-year period.

Analysts surveyed by Thomson Reuters had predicted a loss of $1.43 a share on revenue of $3.1 billion.

Steel companies saw demand evaporate during the recession and the housing crisis when consumers stopped buying cars, homes and appliances. Though there were improvements as 2009 came to a close, U.S. Steel expects first-quarter operating loss "in line" with the fourth quarter.

Automotive, service center, converter and appliance customer order rates in North America and Europe are near their highest levels in the last twelve months, Surma said, while construction demand in North America remains soft.

"A gradually strengthening economy should result in improvements in real demand, while apparent demand will likely be positively influenced by the restocking of the manufacturing supply chain, which we believe is under way," Surma said.

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U.S. Steel reported a steep loss for the fourth consecutive quarter as sales fell sharply and the company said Tuesday it expects that trend to continue this quarter.Shares tumbled nearly 9 percent, or $4.89, to $51.34.Orders from auto and appliance makers are starting to...
US,Earns,US,Steel
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2010-02-26
Tuesday, 26 Jan 2010 10:02 AM
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