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United States Steel Corp. (NYSE: X) reported a third consecutive quarter loss as the demand for the Company's steel product suffers during the weak economy.
The company reported a third-quarter loss of $2.11, versus the consensus of a $2.87 loss and a loss of $2.92 last year. Sales were up 32% to $2.8 billion, versus the consensus of $2.72 billion.
Net sales are down from $7.3 billion to $2.8 billion from the year-ago quarter, while the Company reported a $2.11 loss, compared to an EPS of $7.84 in the third-quarter of 2008. Both numbers improved from the second-quarter of 2009.
Commenting on results, U. S. Steel Chairman and CEO John P. Surma said, "Shipment volumes and operating rates for all of our reportable segments increased significantly from the very low levels of the second quarter as we brought several idled facilities online to satisfy increased customer order rates. Our European and Tubular segments had improved financial performance and our Flat-rolled segment's results were in line with the prior quarter despite the effects of continued low operating rates and facility restart costs."
Net (loss) income in the third-quarter 2009 reported at a loss of $303 million, compared to a profit of $919 million in the year-ago quarter.
According to Mark L. Barr, analyst for KeyBanc Capital Markets, the Company indicated it is seeing a gradual recovery in its overall end markets, and expects a reduced overall operating loss for the fourth-quarter of 2009 compared to 3Q09, despite some easing of lower fourth-quarter order momentum due at least in part to seasonal factors. Increased maintenance outage costs will also likely impact fourth-quarter results.
Goldman Sachs' analyst, Sal Tharani is maintaining a Neutral rating based on the better than expected third –quarter results from U.S. Steel. Tharani expects positive reaction to the share price on the back of the third-quarter earnings release.
U.S. Steel is trading down after the reported results at $37.18, down 8.38 percent.
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