Earnings Report: US Steel Posts Narrower-Than-Expected Q2 Loss And Expects Return To Profit In Q3

US Steel (NYSE:X) reported a Q2 loss of $0.17 per share, vs. consensus estimates for a loss of $0.63 per share. The reported EPS loss includes a foreign-currency loss in Q2.

The steel giant said Q2 revenue rose 20.1% to $4.68 billion, vs. consensus estimates of $4.63 billion.

US Steel reported Shipments of 5.9 million tons, an increase of 9% from first quarter 2010.

Commenting on U. S. Steel's outlook for the third quarter, President John Surma said, "We expect to report an overall operating profit in the third quarter as the U.S. and European economies continue to work their way through a gradual and uneven recovery process. Operating results are expected to be below the second quarter largely due to a decrease in shipping and production volumes for our Flat-rolled segment, reflecting slower order rates, primarily from spot market customers thus far in the quarter, which likely includes some normal seasonal variations and the impact of shorter lead times; however, reported carbon flat-rolled inventory levels on a months-of-supply basis at North American service centers remain below historical averages and end user demand appears stable. Similar market conditions prevail for our European operations."

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