Nov. 11, 2015
 
U.S. Steel Sees $173 Million Loss in Third Quarter

United States Steel Corp., Pittsburgh, reported a net loss of $173 million for the third quarter, an improvement of 16.4 percent from the same quarter in 2014. Of the quarterly loss, $53 million was attributed to the shutdown of the blast furnace and associated steelmaking operations at Fairfield Works in Alabama.

The steelmaker’s net sales fell 38.3 percent to $2.8 billion in the quarter. Net sales through nine months declined 33.0 percent to $9.0 billion.

“Total segment EBIT improved as compared to the second quarter as we continued to take action to address our cost structure. We remain focused on our Carnegie Way transformation efforts to weather the continued difficult market environment. These efforts will better position our company to generate stronger operating margins and respond to changing market conditions," said Mario Longhi, president and CEO.

Third-quarter results for the company’s Flat-Rolled segment improved compared to the second quarter, despite lower utilization rates and a $20 per ton decline in averaged realized prices. Imported flat-rolled products remained excessively high in the third quarter, causing further damage to the domestic market, executives said.

Third-quarter results for the company’s Tubular segment improved compared with the second quarter largely as a result of U.S. Steel’s continued focus on reducing operating costs to offset unfavorable commercial conditions. Shipments and average realized prices continue to be hurt by reduced drilling activity caused by low energy prices, executives noted.

“Commercial markets are not improving as we had anticipated for the second half of 2015. Steel selling prices reversed direction as excessively high levels of imports and a significant decline in steel scrap prices caused spot prices to reach new lows for the year. High import levels also had a negative impact on the rebalancing of supply chain inventories, decreasing customer order rates in the second half of the year. Based on these factors, we expect significantly lower shipments and average realized prices than we previously projected for full-year 2015,” Longhi said.



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