US Steel reports $267 million net loss for Q4

Pittsburgh-based US Steel reported Tuesday a net loss of $267 million for the fourth quarter of 2009, compared with a third-quarter loss of $303 million and a net income of $290 million in the fourth quarter of 2008.

The company reported fourth quarter net sales of $3.4 billion, a 19 percent increase from the previous quarter, but down from $4.5 billion in the fourth quarter of 2008. US Steel shipped 4.7 million net tons in Q4, up 12 percent from both Q3 of 2009 and Q4 of 2008.

The loss from operations in the fourth quarter of 2009 totaled $329 million, compared to a loss of $412 million in the third quarter of 2009 and income of $522 million in the fourth quarter of 2008.

For full-year 2009, US Steel reported a net loss of $1.4 billion, compared with a net income of $2.1 billion for full-year 2008. Net sales for 2009 totaled $11 billion, versus $23.7 billion in 2008. Shipments during 2009 fell to 14.9 million net tons from 24.4 million net tons in 2008. Loss from operations for full-year 2009 was $1.7 billion versus a $3.1 billion income from operations in 2008.

“We reported a modest improvement in fourth-quarter results as compared to the third quarter mainly due to higher average realized prices, increased shipments and higher utilization rates for our flat-rolled operations, primarily driven by North American automotive and service center markets, and the return to profitability of our tubular operations,” said US Steel Chairman and CEO John P. Surma.

Looking forward, US Steel expects to report an overall first quarter 2010 operating loss in line with the fourth quarter 2009 as business conditions gradually improve. The company also predicts that a gradually strengthening economy should result in improvements in real demand, while apparent demand will likely be positively influenced by the restocking of the manufacturing supply chain.