U.S. Steel Posts Loss on Declining Revenue

The company said it missed analyst estimates for the quarter on falling revenue.

Author:: Michael Dunn
Publish date:: Apr 26, 2002 9:06 AM EDT

U.S. Steel

saw its losses continue into the first quarter as revenue fell from a year ago.

The company posted a loss of $83 million, or 93 cents a share, including a favorable after-tax effect of special items. In the year-ago quarter, the company reported net income of $9 million, or 10 cents a share, also reflecting favorable after-tax gains of $107 million.

On an adjusted basis, the company lost $96 million, or $1.07 a share, in the quarter, compared with an adjusted loss of $98 million, or $1.09 a share, a year ago. Analysts polled by Thomson Financial/First Call were expecting a loss of 81 cents a share.

Revenue for the quarter fell to $1.431 billion from $1.510 billion a year ago, but the company said it believes prices have now bottomed for its flat-rolled business segments. Flat-rolled shipments increased 15% in the quarter, and domestic raw steel production grew to 92% of capability.

Going forward, the company said it expects to see improving conditions in the U.S. and Europe, and it expects to be profitable for 2002. Analysts are expecting the company to lose 91 cents a share for the year.

Shares of U.S. Steel closed at $17.76 Thursday before the release.