U.S. Steel today reported second-quarter results that handily beat Wall Street estimates, sending shares of the Pittsburgh steelmaker higher during after-hours trading.
President and CEO Mario Longhi said operating profits for the current quarter should increase significantly.
The company reported a loss of $18 million, or 12 cents per share versus a loss of $78 million, or 54 cents per share, in the year-ago quarter. Sales were flat at $4.4 billion.
Excluding one-time expenses of $55 million for lawsuits and assets held for sale and a one-time gain of $12 million, the company reported adjusted net income of 17 cents per share.
Analysts surveyed by Bloomberg had forecast an adjusted loss of 31 cents per share on sales of $4.2 billion.
The company’s North American flat roll steel business suffered lingering impacts from a roof collapse at a mill near Detroit and delays in shipping iron ore to its Gary, Ind., mill because of icy conditions on the Great Lakes during the first quarter. Mr. Longhi had warned those troubles would spill over into the second quarter. He said the unit experienced higher operating costs and lower shipments compared to the first quarter.
Results in Europe were flat compared to first-quarter levels while U.S. Steel’s tubular business improved thanks to higher shipments and lower raw materials costs.
The results were announced after Wall Street closed. U.S. Steel shares finished today at $27.67, down 17 cents. They are off 6 percent this year.
Len Boselovic: 412-263-1941 or firstname.lastname@example.org First Published July 29, 2014 12:00 AM