US Steel announced a net loss of $49 million in Q2
US Steel Corp. (USS) headquartered in Pittsburgh, announced its financial results for the second quarter of 2003. According to these results, company recorded a net loss of $49 million increasing 29% when compared to $38 million loss in the first quarter of the year. Last year company posted $27 million profit for the second quarter. Although USS sold certain assets and completed sale of its coal operations during the quarter and gained pre-tax income of $34 million and $13 million respectively, it is stated that the $52 million health care benefits paid once for employees of USS' coal mining business which was sold last month has effected company's results this quarter. Added to that, USS paid $872 million for the acquisition of substantially all of National Steel assets in the second quarter upon receiving the approval. Meanwhile, a top executive declared that aiming to become more a competitive company worldwide USS started to implement agrressive measures for cost reduction expecting to get significant results by the fourth quarter of 2003. With these measures approximetly $400 million cost reduction is expected. On the other hand, it is certain that despite cost reduction measures, the major maintenance programs to take place in the last quarter and expected to cost around $35 million will have a negative impact on financial results.