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USX sees smaller loss
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July 13, 2001: 9:31 a.m. ET
Steel Group's 2Q sales, shipments called stronger than expected
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NEW YORK (CNNfn) - USX Corp. said the second-quarter loss at its US Steel Group will be smaller than most analysts' forecasts because of better-than-expected revenue and shipments.
The company, the nation's largest steelmaker, said losses will be closer to the low estimate of 50 cents a share than the high estimate of $1.06 a share. The consensus of analysts surveyed by First Call forecast the company would 72 cents a share in the period.
USX said revenue rose to $1.7 billion in the quarter from $1.61 billion a year earlier and $1.56 billion in the first quarter, much better than the decline to $1.39 billion First Call's analysts had forecast.
The company said second-quarter steel shipments were 2.6 million tons, a 10 percent improvement over the first quarter.
It said earnings before interest, taxes, depreciation and amortization (EBITDA) will be $50 million to $60 million, compared with a negative EBITDA of $28 million in the first quarter.
USX gave no any reason for the improved results, but US Steel Group competitor LTV Corp. is in bankruptcy and has started to lose customers concerned about the company's long-term viability. General Motors Corp. (GM: Research, Estimates), LTV's largest customer, said earlier this week that it is phasing out purchases from LTV, which supplied 500,000 tons of steel last year.
Besides US Steel Group (X: Research, Estimates), USX Corp. also includes Marathon Oil (MRO: Research, Estimates). The Pittsburgh-based company announced in April a plan to split the two units into separate corporations.
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Shares of the tracking stock for US Steel Group gained 75 cents to $20.55 Thursday. 
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USX Corp.
U. S. Steel
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