U.S. Steel Corp. posted a wider loss and reported a 34% revenue
decline as the steel market remained "significantly
challenging."
The company said cost-cutting efforts have partly offset
depressed volumes and low prices in tubular and flat-rolled markets
and the effect of imports.
U.S. Steel expects market conditions to improve in the second
half of the year as supply chain inventories rebalance, primarily
in flat-rolled markets.
The company reported a loss of $261 million, or $1.79 a share,
compared with a loss of $18 million, or 12 cents a share, a year
earlier.
The latest quarter included a write-down of 93 cents a share of
its retained interest in U.S. Steel Canada, which applied for
bankruptcy protection in late 2014.
The loss excluding items was 79 cents a share.
Net sales fell to $2.9 billion from $4.4 billion.
Analysts polled by Thomson Reuters projected a loss of 65 cents
a share on revenue of $3.04 billion.
In April, U.S. Steel lowered its pretax 2015 earnings forecast,
citing "massive" amounts of imports, low oil prices and excess
inventories. The company said at the time it expected adjusted
earnings before interest and taxes of between $115 million and $315
million, from a prior projection of between $550 million and $850
million. The company said Tuesday it continues to expect results
within this range.
Across the board, steelmakers in the U.S. are reeling as prices
have dropped to their lowest levels since the 2009 financial
crisis.
A sharp decline in oil prices has led to a pullback by energy
producers and lower demand for steel pipe for drilling.
Under Chief Executive Mario Longhi, who took over in 2013, U.S.
Steel has been aggressive about laying off workers and cutting
costs.
Write to Josh Beckerman at josh.beckerman@wsj.com
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