US Steel shows its mettle, for now
US Steel Corp. (USSC) reported first quarter 2005 net income of $455 million, or $3.48 per diluted share. Comparatively, USSC reported a Q1 2004 net income of $58 million, or $.47 per diluted share.
Speaking about his company's strong quarter, USSC President and CEO John P. Surma said that USSC's results can largely be pinned on excellent performance from its European and
Tubular segments. He added that a balanced
North America raw materials position bolstered USSC's domestic performance.
Further compounding USSC's success was a $130 million influx of cash to its main domestic defined benefit pension plan.
Average prices of flat-rolled products for second quarter 2005 are expected to decline; shipments, however, should remain consistent with the first quarter.
Due to a planned outage of Lorain
Pipe Mills, second quarter
tubular steel shipments are expected to be lower. At the same time, average realized prices will improve modestly and tube round costs will increase. Full year shipments for USSC's
Tubular Section are expected to be approximately 1.2 million tons.
“With a strong first quarter behind us,” said Surma, “we anticipate another very profitable year with significant contributions from all of our business segments.”
At first glance, the industry outlook looks very positive but analysts are monitoring it closely for signs of weakening.