U.S. Steel Posts Strong Fourth Quarter

U.S. Steel today reported a fourth quarter profit of $275 million, capping its first profitable year since 2008.

The earnings, which amounted to $1.83 per share, topped Wall Street estimates. Sales fell 5 percent to $4.07 billion but also topped estimates.

The news sent U.S. Steel shares higher in after-hours trading.

For all of 2014, the Pittsburgh steel producer reported net income of $102 million, or 69 cents per share, vs. a 2013 loss of $1.65 billion, or $11.37 per share. Sales rose less than 1 percent to $17.51 billion.

Read more: http://www.post-gazette.com/local/city/2015/01/27/U-S-Steel-posts-strong-fourth-quarter/stories/201501270204

U.S. Steel Plans To Close Plants Affecting 545 Workers

U.S. Steel Corp. said on Wednesday it plans to close two coke-making units and a tin mill that makes sheet for cans at plants in Illinois and Indiana, actions that would affect 545 workers.

The closings are the latest to be announced by the Downtown-based steelmaker as it “moves through its Carnegie Way assessment of all our operations,” said spokeswoman Courtney Boone.

Two weeks ago, U.S. Steel said it will shut down two more oil and natural gas pipe plants and lay off 756 workers. In August, it closed pipe plants in McKeesport and Bellville, Texas, affecting 260 workers.

CEO Mario Longhi has moved to restore confidence and improve performance. He has closed mills and saved almost $1 billion under its Carnegie Way initiative to cut costs and by halting an iron ore expansion project in Keewatin, Minn. The company also has relinquished control of its money-losing Canadian unit.

Read more: http://triblive.com/business/headlines/7610821-74/steel-plant-oil#ixzz3PUwjOrRD
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Iron Ore Price Decline Hurts U.S. Steel’s Cost Advantage Over Rivals

U.S. Steel (Photo credit: Wikipedia)

U.S. Steel Corp.’s cost advantage over competitors from owning its iron ore mines is shrinking as the price of the commodity used to make steel sinks to a four-year low.

Analysts said iron ore’s decline to $70 a metric ton puts pressure on the Downtown-based steelmaker because competitors will benefit from lower raw material costs that U.S. Steel has long enjoyed. That pressure will mount as steel prices follow iron ore prices lower, especially helping competitors with lower production costs such as Nucor Corp., U.S. Steel’s chief rival.

“The U.S. Steel guys are going to have to work real hard to separate the revenue declines from external forces,” said John Tumazos of Very Independent Research of Holm-del, N.J. “Everything they’ve done in the last two years to cut costs was necessary, but everything points to more cost cuts.”

Under CEO Mario Longhi’s leadership, the Downtown-based steelmaker has closed mills, saved $500 million by halting an iron ore expansion project in Keewatin, Minn., relinquished control of its money-losing Canadian unit and saved $495 million under its Carnegie Way initiative to cut costs and return to profitability.

Read more: http://triblive.com/business/headlines/7191828-74/steel-ore-iron#ixzz3JosqYOZp
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