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U.S. Steel tops 2Q mark
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July 23, 2001: 8:40 a.m. ET
Largest U.S. steelmaker says prices bottomed out in 2Q, sees better results
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NEW YORK (CNNfn) - USX Corp.'s U.S. Steel Group reported Monday it did better than even its recent guidance suggested, although the nation's largest steelmaker still lost money in the second quarter.
The company's Marathon Oil (MRO: Research, Estimates) subsidiary also posted better-than-expected results as its net income increased by more than half.
U.S. Steel Group (X: Research, Estimates), which has its own tracking stock, lost $30 million, or 36 cents a share, in the quarter.
Analysts surveyed by earnings tracker First Call cut the unit's loss estimate to 55 cents a share after the company said July 13 that it had stronger than expected shipments during the recently completed period, and that the loss would come in at the lower end of estimates. Before that guidance the loss per share forecast stood at 72 cents. The unit earned $66 million, or 72 cents a diluted share, in the year-earlier period excluding a $10 million after-tax charge for environmental and legal contingencies.
Revenue increased to $1.74 billion from $1.66 billion a year earlier, despite lower prices. The addition of U. S. Steel Kosice, a Slovak Republic steel operation, led to the increased sales despite a drop in domestic production.
The company said it believes it saw a bottoming out of steel prices during the second quarter, and that a strong order book and lower natural gas prices give it hopes for improved results in the second half.
The Bush Administration has taken the first step toward possibly imposing penalties on overseas steelmakers, charging them with dumping steel on the U.S. market. In addition, competitor LTV Corp., which is in bankruptcy, has begun losing major contracts from customers concerned about the continuity of future supplies.
Marathon posted net income of $582 million, or $1.88 a diluted share, beating the First Call forecast of $1.52 a share for the period. The company earned $367 million, or $1.18 a diluted share, a year earlier.
Revenue at the oil and gas unit rose 12 percent to $9.18 billion from $8.71 billion.
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USX has announced plans to split Marathon and US Steel back into separate companies. 
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USX sees smaller loss, more steel sales - July 13, 2001
LTV Corp. loses biggest account with GM - July 9, 2001
Steel woes could bring turnaround - June 12, 2001
Bush moves towards steel imports limits - June 5, 2001
USX to separate into energy, steel businesses - April 24, 2001
USX oil and steel units 2Q profits soar - July 21, 2000
US Steel Group beats 4Q estimate - Jan. 24, 2000
4Q oil profits soar - Jan. 24, 2000
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USX Corp.
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