) logged net loss of $73 million or 51 cents per share in the
first quarter of 2013, narrower than net loss of $219 million or
$1.52 per share posted a year ago. The bottom-line in the
year-ago quarter was hurt by a hefty loss associated with the
sales of the company's Serbia unit.
The net loss in the reported quarter include an after-tax
charge of $22 million, or 16 cents per share, related to
repurchases of Senior Convertible Notes.
Barring the after tax charge, net loss was 35 cents a share
compared with a net income of 67 cents per share. It was wider
than the Zacks Consensus Estimate of a loss of 18 cents.
Revenues for the first quarter fell nearly 11.2% year over year
to $4,595 million, missing the Zacks Consensus Estimate of $4,612
million. The company faced continued economic challenges and
competitive steel market conditions in the quarter.
U.S. Steel's shares fell roughly 4% in pre-market trading.
The company's Flat-rolled segment reported a loss of $13 million
in the first quarter compared with a profit of $183 million in
the year ago quarter and a profit of $11 million in the fourth
quarter of 2012. The sequential decline was due to increased
Shipments increased 2.4% sequentially to 4 million net tons
but decreased 1.8% year over year. Average realized price
was $719/net ton in the quarter, down 5.9% on year over year
basis and 0.3% on a sequential basis.
U.S. Steel Europe (USSE) recorded a profit of $38 million in the
quarter, representing an improvement over last year's loss of $34
million and profit of $7 million in fourth-quarter 2012.
Sequential increase was due to higher shipments. Average realized
price of $718 per net ton declined 4.1% year over year and was at
U.S. Steel's Tubular segment's profit tumbled 50.4% year over
year to $64 million but doubled sequentially. The sequential jump
was due to decreased operating costs and increased shipments.
Average realized price declined 9.9% year over year and 4.2%
sequentially to $1,556 per net ton.
U.S. Steel had cash and cash equivalents of $733 million as of
Mar 31, 2013, compared with $652 million as of Mar 31, 2012.
Long-term debt was $3,932 million as of Mar 31, 2013, compared
with $3,802 million as of Mar 31, 2012.
Moving ahead, U.S. Steel expects its second-quarter 2013 total
reportable segment and Other Businesses operating results to be
near breakeven. The company expects lower results for the
Flat-rolled segment in the second quarter and envisions lower
shipments on a sequential basis.
Operating costs are forecast to increase led by higher repairs
and maintenance costs as well as higher natural gas costs.
Average realized prices are expected to be comparable to the
Results from the USSE segment is expected to be lower than the
first quarter as a result of higher raw materials costs, mainly
iron ore. Shipments and average realized euro-based prices are
expected to be comparable to the first quarter.
U.S. Steel expects the Tubular segment to post second quarter
results at par with the first quarter. Shipments are expected to
increase compared to the first quarter to support a higher level
of drilling activity while average realized prices are
anticipated to be slightly lower.
U.S. Steel currently carries a short-term Zacks Rank #4
Other companies in the steel industry with favorable Zacks
Gibraltar Industries Inc.
Shiloh Industries Inc.
). While Gibraltar and Shiloh hold a Zacks Rank #1 (Strong Buy),
Mechel retains a Zacks Rank #2 (Buy).
MECHEL OAO ADS (MTL): Free Stock Analysis
GIBRALTAR INDUS (ROCK): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
UTD STATES STL (X): Free Stock Analysis
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