US Steel Corp. today reported third quarter 2018 net earnings of $291 million on net sales of $3.73 billion, compared to third quarter 2017 net earnings of $147 million on net sales of $3.25 billion.
Net earnings in the company’s flat rolled segment totaled $305 million in Q3 on shipments totaling 2.66 million tons, compared to $161 million in Q3 2017 on shipments of 2.54 million tons. Net earnings in the tubular segment totaled $7 million in Q3 on shipments of 184,000 tons, compared to a net loss of $7 million in Q3 2017 on shipments totaling 185,000 tons. Capability utilization was 68 percent in Q3, compared to 66% in Q3 2017.
Commenting on the results, President and Chief Executive Officer David B. Burritt said, "Our third quarter results were in line with our expectations, with a significant improvement in earnings from our Flat-rolled segment and a return to profitability for our Tubular segment."
As for guidance for full-year 2018, Burritt said, "Market conditions remain solid, with stable end-user steel consumption. We experienced lower customer order rates for an extended period, driven by falling spot and index prices. However, we expect continued strength in steel demand will support favorable market conditions as we enter 2019."
Burritt continued, “We expect results for our Flat-rolled segment to continue to improve primarily due to increased shipments and lower maintenance and outage costs, partially offset by lower average realized prices. Despite a softening in the energy tubulars market, we expect Tubular to continue to improve primarily due to increased shipments, partially offset by lower average realized prices. We expect results for our European segment to decrease primarily due to inventory revaluation adjustments related to raw material price volatility.”