US Steel posts stellar Q3 earnings

United States Steel Corporation has announced strong financial results for the third quarter; however, it has also stated its expectations of lower profitability in the fourth quarter. The Pittsburgh, Pennsylvania-based flat rolled steel producer reported a third quarter net income of $417 million, or $3.42 per diluted share, sharply up from the Q3 2005 net income of $93 million, or $0.71 per diluted share. Net income for the first nine months of the current year was $1.08 billion, or $8.67 per share, compared with $801 million, or $6.13 per share, for the first nine months of 2005. Net sales for the third quarter totaled $4.1 billion, compared to net sales of $3.2 billion in Q3 ’05. While the company attributed its strong financial results to the higher steel prices in the third quarter, it added that it expects weaker results for the fourth quarter. US Steel chairman and CEO John P. Surma told the press, “Overall operating results are expected to decline from the third quarter, primarily reflecting reduced profitability in our flat rolled segment. Recent weakening in the US economy coupled with high imports and customer inventory levels have resulted in softer flat-rolled spot markets in the near term.” The company also plans to take three or four blast furnaces offline in the fourth quarter, depending on the strength of the flat rolled market.