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US Steel Posts Adjusted Profit After Serbian Sale

Tuesday, 24 April 2012 09:23 AM

U.S. Steel Corp. on Tuesday posted an adjusted first-quarter profit that beat Wall Street estimates, partly because it sold off its money-losing operations in Serbia and shipped more flat-rolled steel in the quarter.

The results sent the steelmaker's stock up 3.3 percent to $29.00 per share in pre-market trading on the New York Stock Exchange.

The company posted a net loss of $219 million, or $1.52 per share, compared with a net loss of $86 million, or 60 cents a share, in the same quarter of 2011.

But adjusted for items, including a $399 million loss on the sale of its Serbian operations, it posted a profit of 67 cents a share, which beat analyst expectations.

Sales rose to $5.2 billion from $4.8 billion in the 2011 quarter on higher prices and shipments, the Pittsburgh-based company said.

Analysts on average had expected adjusted earnings of 45 cents a share and revenue of $4.95 billion, according to Thomson Reuters I/B/E/S.

Chairman and CEO John Surma said the significant improvement in operating results over the fourth quarter was mainly driven by improved average realized prices and shipments for U.S. Steel's flat-rolled products.

There was also strong performance in its tubular steel business thanks to oil and gas drilling, but European results "continue to reflect the challenging economic situation in the region."

He said second-quarter results were expected to be consistent with the first quarter, although the flat-rolled segment might decrease due primarily to higher maintenance costs.

© 2018 Thomson/Reuters. All rights reserved.

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Tuesday, 24 April 2012 09:23 AM
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