U.S. Steel beats by $0.31, misses on revs
Reports Q3 (Sep) loss of $0.14 per share, excluding excluding an after-tax non-cash goodwill impairment charge of $1.8 billion, or $12.24 per diluted share, $0.31 better than the Capital IQ Consensus Estimate of ($0.45); revenues fell 11.2% year/year to $4.13 bln vs the $4.32 bln consensus.
As of September 30, 2013, U. S. Steel had $697 mln of cash and $2.4 bln of total liquidity
Reportable Segments and Other Businesses •Flat-rolled segment results from operations improved versus the second quarter due to an increase in average realized prices and lower repairs and maintenance costs partially offset by reduced shipments. ◦Average realized prices increased compared to the second quarter due to higher spot market prices. ◦Shipments decreased significantly due to a planned blast furnace outage at our Great Lakes Works and the Lake Erie Works labor dispute. •Third quarter results for our European segment decreased compared to the second quarter. A scheduled blast furnace outage resulted in significantly lower shipments and increased facility repairs and maintenance costs. Average realized euro-based prices were comparable to the second quarter as decreases in spot and contract market prices were offset by the positive effect of a higher percentage of value-added shipments. •Third quarter results for our Tubular segment were comparable to the second quarter. Shipments and average realized prices increased slightly primarily due to a higher percentage of alloy and seamless shipments. Operating costs increased due to higher repairs and maintenance costs. Outlook/commentary "We expect total reportable segment and Other Businesses income from operations to decrease compared to the third quarter due primarily to planned maintenance outages in our Flat-rolled segment...Results for our European segment are projected to improve compared to the third quarter and Tubular results are expected to be comparable to the third quarter...Fourth quarter results for our Flat-rolled segment are expected to be near breakeven...We expect results for our European segment to improve in the fourth quarter and return to profitability due to higher shipments and lower facility repairs and maintenance costs as a blast furnace outage was completed in the third quarter..."