US Steel records $12 million in Q4 of 2002
United States' second largest steelmaker
US Steel announced it recorded a net income of $ 12 million in the fourth quarter of 2002. This figure is quite remarkable when compared to the net loss of $ 174 million recorded in the same quarter of a year earlier. Company's revenue totals to $1.9 billion, still higher than $1.41 billion compared to the same quarter of the previous year. Since 1999, this is the first year the company records profit.
The reasons that backed up the company performance were rising steel prices with the influence of the implemented safeguard tariffs to a certain stage. Positive effects of the cost cutting strategies that have brought better than expected progress were also effective in this respect.
US Steel has initiated a cost cutting plan which aims to achieve $30/ton reduction in domestic
production over three years. This is believed to turn out the profits to be even higher in the coming years. . The company mainly aims to improve its value added capabilities and further grow in the international market
Furthermore, the company's wing in Slovak Republic,
US Kosice has also been of great support for profitability.
US Kosice's Q4 income in 2002 is increased to $45 million from Q4 income of $2 million in 2001.
On the other hand, it is commonly believed that spendings on the repairs of blast furnace together with the high cost of natural gas were the reasons that held back the profitability to a certain extent.
The company expects healthy demand from automakers and appliance industry and consequent price rises to last in the current quarter as well and therefore remains optimistic for the performance in the coming couple of months.