US Steel reported third quarter 2016 net earnings of $51 million, compared to a third quarter 2015 net loss of $173 million and a second quarter 2016 net loss of $46 million.
Net sales for the quarter totaled $2.68 billion, compared to $2.58 billion in Q2 2016 and $2.83 billion in Q3 2015.
Third quarter results for the flat-rolled segment improved from the second quarter as both spot and contract prices increased, according to the company’s financial statement, adding that operational issues adversely impacted shipments from flat-rolled facilities. In the last half of the third quarter, the company experienced unplanned outages at several steelmaking and finishing facilities. Third quarter shipments were negatively impacted by approximately 125,000 tons as a result of unplanned outages.
Third quarter results for the tubular segment increased compared to the second quarter, but “continue to reflect the challenges of operating at very low utilization rates in a low price environment.”
Commenting on US Steel's outlook for the rest of the year, President and CEO Mario Longhi said, “If market conditions, which include spot prices, customer demand, import volumes, supply chain inventories, rig counts and energy prices, remain at their current levels, we expect a 2016 net loss of approximately $355 million. We expect results for our Flat-Rolled and European segments to be higher than 2015 results and results for our Tubular segment to be lower than 2015 results.”