US Steel reported second quarter 2017 net earnings of $261 million. This compared to a second quarter 2016 net loss of $46 million, and a first quarter 2017 net loss of $180 million.
In a press release, US Steel said second quarter results for the Flat-Rolled segment improved significantly compared with the first quarter, primarily due to higher results from mining operations and a second consecutive quarter of increasing average realized prices and shipments. The higher results from mining operations reflect the benefits from the restart of the Keetac facility to support third-party pellet sales, as well as normal seasonal improvements.
Second quarter results for the Tubular segment improved compared with the first quarter due to increased average realized prices and shipments, as well as operational efficiencies. These benefits were partially offset by increased substrate costs.
Commenting on an outlook for the remainder of 2017, US Steel President and Chief Executive Officer Dave Burritt said, “We are seeing a more bullish sentiment in the markets served by our Flat-Rolled and European segments right now, as prices have been increasing and overall demand has been stable. Our Tubular segment continues to benefit from operational and cost improvements we have made, as well as from stronger market conditions.”
If market conditions remain at their current levels, the company expects full-year 2017 net earnings of approximately $300 million.