October 14, 2008

US Steel Q1 profit falls by 14% YoY

US Steel Corp announced that its first quarter profit fell in its European and tubular businesses, leading to a 14% decline in total earnings despite higher shipments and prices for steel. It reported a net income of USD 235 million during the first quarter 2008 compared to first quarter 2007 net income of USD 273 million.

US Steel reported first quarter 2008 income from operations of USD 266 million, compared with income from operations of USD 116 million in the fourth quarter of 2007 and USD 346 million in the first quarter of 2007.

Other items not allocated to segments in the first quarter of 2008 consisted of a previously disclosed USD 45 million pre tax reserve established as a result of an adverse court ruling involving a power supply contract and a USD 17 million pre tax charge for inventory transition effects related to the acquisition of US Steel Canada (USSC). These items reduced net income by USD 45 million. Other items not allocated to segments in the fourth quarter of 2007 decreased net income by USD 117 million.

Mr John P. Surma chairman & CEO of US Steel said that "Net sales grew to a quarterly record of USD 5.2 billion and profitability increased substantially from the fourth quarter, reflecting sharp improvements in our Flat rolled and European segments on strong operating performances and higher shipments and prices. We've made excellent progress in integrating our Canadian facilities, which operated during the first quarter at the highest utilization rate in recent years."