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United States Steel Corp. Reports Operating Results (10-Q)

October 30, 2012 | About:
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10qk

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United States Steel Corp. (X) filed Quarterly Report for the period ended 2012-09-30.

United States Steel Corporation has a market cap of $3.05 billion; its shares were traded at around $21.15 with a P/E ratio of 30.7 and P/S ratio of 0.2. The dividend yield of United States Steel Corporation stocks is 1%.

Highlight of Business Operations:

Net sales were $4,652 million in the third quarter of 2012, compared with $5,081 million in the same quarter last year. The slight increase in sales for the Flat-rolled segment reflected higher shipments (increase of 137 thousand tons) partially offset by lower average realized prices (decrease of $32 per ton). The decrease in sales for the European segment was primarily due to decreased shipments (decrease of 285 thousand tons) primarily due to the sale of USSS, decreased average realized euro-based prices (decrease of 26 per ton) and the strengthening of the U.S. dollar versus the euro in the third quarter of 2012 compared to the third quarter of 2011. The slight decrease in sales for the Tubular segment was primarily due to a slight decrease in shipments (decrease of 24 thousand tons) and lower average realized prices (decrease of $23 per ton).

Net sales were $14,841 million in the first nine months of 2012, compared with $15,065 million in the same period last year. The increase in sales for the Flat-rolled segment primarily reflected higher shipments (increase of 325 thousand tons) partially offset by lower average realized prices (decrease of $6 per ton). The decrease in sales for the European segment was primarily due to decreased shipments (decrease of 868 thousand tons) primarily due to the sale of USSS, decreased average euro-based realized prices (decrease of 33 per ton) and the strengthening of the U.S. dollar versus the euro in the first nine months of 2012 compared to the first nine months of 2011. The increase in sales for the Tubular segment primarily reflected higher average realized prices (increase of $128 per ton) and shipments (increase of 149 thousand tons) as a result of increased drilling activity.

The decrease in Flat-rolled results in the third quarter of 2012 compared to the same period in 2011 resulted from a decrease in average realized prices (approximately $190 million), increased spending and other operating costs (approximately $50 million, which includes outage costs) and lower steel substrate sales to our Tubular segment (approximately $25 million). These decreases were partially offset by reduced energy costs, primarily due to lower natural gas costs (approximately $50 million), lower raw material costs (approximately $20 million) and an increase in shipment volumes (approximately $20 million).

The decrease in Flat-rolled results in the first nine months of 2012 compared to the same period in 2011 resulted mainly from a decrease in average realized prices (approximately $125 million), increased spending and other operating costs (approximately $110 million, which includes outage costs), unfavorable changes from steel substrate sales to our Tubular segment (approximately $75 million) and higher costs for employee profit sharing (approximately $20 million). These decreases were partially offset by reduced energy costs, primarily due to lower natural gas costs (approximately $140 million) and an increase in shipment volumes (approximately $40 million).

The improvement in Tubular results in the first nine months of 2012 as compared to the same period in 2011 resulted mainly from an increase in average realized prices (approximately $150 million), lower substrate costs (approximately $45 million), and an increase of 149 thousand tons in shipments (approximately $40 million). These improvements were partially offset by increased spending and other operating costs (approximately $95 million, which includes facility maintenance costs) and higher accruals for profit-based payments (approximately $5 million).

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