U.S. Steel reports net loss for third quarter

U.S. Steel reports net loss for third quarter

Pittsburgh-based United States Steel Corporation, the largest fully integrated steel producer in the U.S., reported its net sales for the third quarter ended September 30, 2005 fell 13.7 percent from the third quarter 2004. This decrease is largely due to lower spot market prices as well as reduced operating rates resulting from two downed blast furnaces. Net income fell to $107 million, or $0.82 per diluted share, compared to third quarter 2004 net income of $354 million, or $2.72 per diluted share. Year-to-date net income was reported as $807 million, compared to year-to-date 2004 net income of $623 million. U.S. Steel President and CEO John P. Surma said, “Our flat-rolled and European segments remained profitable despite lower spot market prices and reduced operating rates. Our largest domestic blast furnace and our largest European blast furnace were both down for the entire quarter for major rebuilds. In addition, after standing idle for eighteen years, our No. 1 blast furnace in Serbia took time to ramp up to full production following a rebuild completed in June. In contrast, our tubular segment had another outstanding quarter as demand and prices remained strong.” Commenting on the company’s outlook for the future, Surma said, “With continuing reductions in service center inventory levels and firming spot prices, we expect fourth quarter market conditions to show improvement over the third, but results will remain well below those of the first two quarters of the year. Our order book remains strong across all industries, but we will continue to be affected by high natural gas prices and by reduced domestic raw steel capability for the duration of the Gary blast furnace rebuild.” U.S. Steel manufactures a wide variety of products, including steel sheet, tubular and tin products, coke, and taconite pellets. The company has domestic operations in the Midwestern and Southern United States and international operations in Slovakia and Serbia.