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US Steel 4Q profits fall
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January 24, 2000: 11:22 a.m. ET
But, steel maker beat Wall Street expectations and is upbeat about 2000
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NEW YORK (CNNfn) - Battered by steel imports, USX-US Steel Group saw fourth-quarter profits fall by more than one third, but the company managed to beat analysts' estimates and its management is upbeat about 2000.
The largest U.S. steel maker earned $39 million, or 42 cents a diluted share, excluding one-time items. Analysts surveyed by earnings tracker First Call had expected 41 cents a share for the three-month period.
In the year-ago quarter, the company earned $59 million, or 63 cents a diluted share, excluding one-time items.
Including one-time items, net income was $34 million in the quarter, or 35 cents a diluted share, less than half of the year-ago figures of $76 million, or 81 cents a share.
Revenues rose to $1.5 billion from $1.4 billion a year ago. Shipments rose 22.2 percent from the year-ago quarter, which offset a drop in average steel prices to $418 a ton in the quarter.
The company describes its outlook for 2000 as one of "cautious optimism."
Thomas Usher, chairman of USX Corp., said, "For most products, our order books are strong and prices are increasing. Domestic steel demand is robust and should remain so as long as the U.S. economy remains healthy. The trade cases have had a positive impact. On the other hand, high import levels remain a problem."
For the full year, the company's earnings, excluding one-time items, was $83 million, or 84 cents a share, compared with 1998 figures of $315 million, or $3.40 a share. Revenue for the year fell 15.4 percent to $5.3 billion.
Share of the tracking stock for USX-US Steel Group (X) rose 7/16 to 27-9/16 in morning trading Monday. 
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U.S. Steel Group
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