US Steel reported Wednesday a full-year 2015 net loss of $1.5 billion, compared to full-year 2014 net income of $102 million.
Fourth quarter 2015 net loss of $999 million compares to fourth quarter 2014 net income of $275 million, and a third quarter 2015 net loss of $173 million.
Commenting on results, US Steel President and Chief Executive Officer Mario Longhi said, "The $815 million of Carnegie Way benefits we realized in 2015 show that we continue to make significant progress on our journey toward our goal of achieving economic profit across the business cycle. Our progress is real and it is substantial, but our fourth quarter and full-year results show that it is not yet enough to fully overcome some of the worst market and business conditions we have seen."
Fourth quarter 2015 net loss of $999 million compares to fourth quarter 2014 net income of $275 million, and a third quarter 2015 net loss of $173 million.
Commenting on results, US Steel President and Chief Executive Officer Mario Longhi said, "The $815 million of Carnegie Way benefits we realized in 2015 show that we continue to make significant progress on our journey toward our goal of achieving economic profit across the business cycle. Our progress is real and it is substantial, but our fourth quarter and full-year results show that it is not yet enough to fully overcome some of the worst market and business conditions we have seen."
Fourth quarter and full-year results for the Flat-Rolled segment declined primarily due to a decrease in average realized prices. Imported flat-rolled products, which the company says are dumped and/or subsidized, continued to harm the domestic market, as they did for all of 2015, placing downward pressure on both spot and contract prices.
For the Tubular segment, the company said shipments and prices continued to be adversely impacted by reduced drilling activity caused by low energy prices and high levels of inventory in the supply chain.
Commenting on US Steel's outlook for 2016, Longhi said, "We are facing significant headwinds and uncertainty in many of the markets we serve but remain focused on continuing to improve our cost structure, developing differentiated solutions for our customers and creating more reliable and agile operating capabilities. We have a strong and growing pipeline of Carnegie Way projects that will provide benefits in our operating segments and all other areas of our company. The substantive changes and improvements we are making continue to increase our earnings power. We are working hard every day to serve our customers and are well positioned to respond to improving market conditions."
At current market conditions, the company said it would expect lower results in each of its operating segments as compared to 2015, and the operating efficiencies related to current facility configuration, lower raw materials, operating and overhead costs and additional Carnegie Way benefits would only partially offset the unfavorable effects of lower average realized prices and volumes.