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U. S. Steel Records Q3 Profit, Reaches Agreeement on Stelco Sale
11/01/2016 - United States Steel Corp. posted a third-quarter profit of US$51 million and has agreed to sell the former Stelco to a private investment firm, the company announced on Tuesday.
For the quarter, which ended 30 September 2016, the integrated steelmaker reported earnings of 32 cents per diluted share per on net sales of nearly US$2.7 billion. In the same quarter last year, U. S. Steel lost US$173 million, or US$1.18 per diluted share, on net sales of US$2.8 billion.
In statement, the company said its flat-rolled segment benefitted from higher contract and spot prices for its steel and from returns on its Carnegie Way initiative.
However, unplanned outages at several of its steelmaking and finishing facilities reduced shipments by about 125,000 tons, the company said, adding that its “streamlined plant operating configuration” makes it more difficult to regain ground lost during unplanned outages.
Nevertheless, the company said the quarter yielded its best financial results in nearly two years.
“We faced some operational challenges that limited our ability to realize the full benefits of an improved pricing environment, but we continued to make progress in our Carnegie Way transformation efforts,” U. S. Steel president and chief executive Mario Longhi said in a statement.
"With our very strong cash and liquidity position, we remain focused on the investments that we need to continue to make to revitalize our facilities and deliver value-enhancing solutions for our customers,” he said.
On another front, the company said it has agreed to sell U. S. Steel Canada for US$126 million to New York’s Bedrock Industries. U. S. Steel said the agreement would release it of any environmental and pension claim. Also, U. S. Steel would continue to provide certain shared services to USSC and would sign a pellet-supply agreement that runs through 2021.
In statement, the company said its flat-rolled segment benefitted from higher contract and spot prices for its steel and from returns on its Carnegie Way initiative.
However, unplanned outages at several of its steelmaking and finishing facilities reduced shipments by about 125,000 tons, the company said, adding that its “streamlined plant operating configuration” makes it more difficult to regain ground lost during unplanned outages.
Nevertheless, the company said the quarter yielded its best financial results in nearly two years.
“We faced some operational challenges that limited our ability to realize the full benefits of an improved pricing environment, but we continued to make progress in our Carnegie Way transformation efforts,” U. S. Steel president and chief executive Mario Longhi said in a statement.
"With our very strong cash and liquidity position, we remain focused on the investments that we need to continue to make to revitalize our facilities and deliver value-enhancing solutions for our customers,” he said.
On another front, the company said it has agreed to sell U. S. Steel Canada for US$126 million to New York’s Bedrock Industries. U. S. Steel said the agreement would release it of any environmental and pension claim. Also, U. S. Steel would continue to provide certain shared services to USSC and would sign a pellet-supply agreement that runs through 2021.
