|
 |
Apr-29-2008US Steel profit dips on Europe, tubular declines(topic overview)
CONTENTS:
SOURCES
FIND OUT MORE ON THIS SUBJECT
PITTSBURGH (AP) _ United States Steel Corp. says its first-quarter earnings fell 14 percent as higher sales failed to offset declines in its European and tubular businesses and pretax charges. WEST PALM BEACH, Fla. (AP) _ Office Depot Inc., the nation's second biggest office-supply chain, said Tuesday its first-quarter profit dropped 55 percent due to North American sales declines, but results still managed to top Wall Street's expectations. Its shares rose 7 percent on premarket trading. BERLIN (AP) _ Automaker Daimler AG said Tuesday that its first-quarter profit slipped 32 percent from last year, when its results were lifted by a one-time gain from the transfer of shares in Airbus' parent company. NEW YORK (AP) _ Pacific Capital Bancorp's profit surged 41 percent in the first quarter as the bank bolstered its profitable tax-refund loan business, the company said Tuesday. MINNEAPOLIS (AP) _ G&K; Services Inc., which makes and rents workplace uniforms, said Tuesday its fiscal 2008 third-quarter profit fell 12 percent on a jump in the company's tax rate. [1] NEW YORK (AP) _ United America Indemnity Ltd.' s profit tumbled 67 percent in the first quarter as the insurer paid more claims for damage caused by fires and bad weather, the company said late Monday. TAYLOR, Mich. (AP) _ Masco Corp., a manufacturer of home improvement and building products, said Tuesday its first-quarter earnings fell dramatically due to reduced sales volume in both the new home construction and home improvement markets.[1]
PITTSBURGH (AP) — United States Steel Corp.' s first-quarter earnings slipped 14 percent as higher sales failed to offset pretax charges and declines in its European and tubular businesses, the company said Tuesday.[2]
LONDON (Thomson Financial) - United States Steel Corp. said Tuesday first-quarter net income fell to $235 million, or $1.98 a share, from $273 million, or $2.30 a share, in the same quarter a year ago.[3] We should see the impact in the second quarter, the market is anticipating better numbers," Parr said. In its earnings release, U.S. Steel said net income was $235 million, or $1.98 per share, compared with $273 million, or $2.30 per share, in the same quarter a year earlier.[4] The Pittsburgh-based steel producer posted earnings of $235 million, or $1.98 per share, for the quarter that ended March 31, compared with $273 million, or $2.30 per share, during the same period last year.[2]
The Pittsburgh, Pennsylvania-based company posted first quarter net income of $235 million or $1.98 per share, compared to $273 million or $2.30 per share in the year-ago quarter.[5] Net income from operations for the latest quarter was $266 million, down from $346 million reported in the first quarter of 2007. Other items not allocated to segments in the first quarter of 2008 consisted of a previously disclosed $45 million pre-tax reserve established as a result of an adverse court ruling involving a power supply contract, and a $17 million pre-tax charge for inventory transition effects related to the acquisition of U. S. Steel Canada. These items reduced net income by $45 million, or 38 cents per share, the company said.[5] A $45 million reserve created as a result of an adverse court ruling over a power supply contract and $17 million in costs linked to U.S. Steel's acquisition of the Canadian steel maker Stelco Inc. reduced net income by $45 million, or 38 cents per share.[2]
Net interest and other financial costs in the first quarter of 2008 included a foreign currency gain that increased net income by $70 million, or $0.59 per share, related to the remeasurement of a $1.1 billion U.S. dollar-denominated intercompany loan to a European affiliate, partially offset by euro-U.S. dollar derivatives activity.[5] Among United States Steel's rivals, West Chester, Ohio-based AK Steel (AKS) posted first quarter net income of $101.1 million or $0.90 per share, compared to $62.7 million or $0.56 per share in the prior year quarter.[5] Analysts are looking for earnings of $1.84 per share for the quarter. Another peer, Charlotte, North Carolina-based Nucor Corp. (NUE) reported first quarter net income of $409.8 million or $1.41 per share, compared to $381.0 million or $1.26 per share in the prior year quarter.[5]
In the same quarter last year, net income was reduced by an after-tax charge of $15 million, or $0.24 per share, for costs associated with Ashland's voluntary severance offer.[6]
Net interest and other financial income during the most-recent quarter were $32 million, compared to costs of $5 million in the prior year quarter.[5]
First quarter income for Tubular division amounted to $51 million, down from $102 million generated in the first quarter of 2007. Other Businesses incurred a quarterly loss of $5 million, compared to a profit of $2 million in the same quarter of last year.[5] Segment wise, the company's Flat-rolled business fetched first quarter income of $120 million, up from prior year's income of $75 million, while income from operations for U.S. Steel Europe segment declined to $161 million from $206 million reported in the comparable quarter of the previous year.[5] For U.S. Steel Europe segment, the company projects second quarter results to be higher than the first quarter on increased prices and comparable operating and shipping levels, despite higher raw materials costs.[5] Looking ahead to the second quarter, U. S. Steel Chairman and CEO John Surma said, "We expect that segment income from operations will increase substantially compared to the first quarter of 2008 as realized price increases are expected to surpass continuing increases in scrap and other raw materials costs."[7] The company said income from operations was expected to increase "substantially" in the second quarter, as price increases offset scrap and other raw material cost hikes.[4] U.S. Steel's chairman and chief executive, John P. Surma, said the company expects second-quarter operating income to "increase substantially" as higher prices are expected to surpass continuing increases in scrap and other raw materials costs.[2]
NEW YORK (Reuters) - U.S. Steel Corp (X.N: Quote, Profile, Research ) said on Tuesday that first-quarter profit dropped as income fell in two of the company's three segments -- European and tubular steel -- despite higher selling prices.[4] U.S. Steel stock fell more than 2 percent when the New York Stock Exchange opened, even though the results beat Wall Street estimates. "They were a little better than our estimates," said Mark Parr, an analyst with Keybanc Capital Markets, in Cleveland. "I have never seen a company use the word'substantially,' so they clearly see a dramatic improvement in the second quarter. "Their domestic business was a little weaker, but it's normal to have delays when you have a big pickup in pricing.[4]
Revenue jumped 38 percent to a record-setting $5.2 billion from $3.76 billion in the first quarter of 2007, thanks partly to gains in the company's flat-rolled steel business.[2] One industry price monitoring service, Purchasingdata.com, said the price of benchmark grade hot-rolled sheet in coil increased by 24 percent in the first quarter to $661 per ton. During the quarter, United States Steel announced plans to invest $300 million into its Minnesota Ore Operations, increasing production of iron pellets.[8] Segment income from operations for the latest quarter was $327 million or $48 per ton, compared to $385 million or $76 per ton in the first quarter of 2007.[5]
Other items not allocated to segments in the first quarter of 2008 consisted of a previously disclosed $45 million pre-tax reserve established as a result of an adverse court ruling involving a power supply contract, and a $17 million pre-tax charge for inventory transition effects related to the acquisition of U. S. Steel Canada.[6]
Second quarter Tubular results was estimated to improve over the first quarter as higher prices and shipments are partially offset by further increases in costs, principally for semi-finished steel. Results for Other Businesses are anticipated to increase primarily due to normal seasonal improvements at our iron ore operations in Minnesota.[5] In January, when U.S. Steel - which operates a major plant in Fairfield - announced a sharp drop in fourth-quarter earnings, it said the first quarter would continue to reflect volatile costs and pricing.[9] NEW YORK (Associated Press) - United States Steel Corp. reports earnings for the first quarter on Tuesday.[8]
Analysts, on average, polled by First Call/Thomson Financial expected earnings of $1.22 per share on revenues of $4.09 billion. [6] On average, eight analysts polled by First Call/Thomson Financial expected the company to earn $0.68 per share.[6]
Street analysts expect earnings of $0.38 per share on revenues of $903.56 million. [6] The mean estimate of analysts polled by Thomson Reuters was for earnings of $1.81 a share on revenue of $5.09 billion.[3]
On average, analysts expected per-share earnings of $1.81 on revenue of $5.09 billion for the Pittsburgh steelmaker (NYSE:X).[9]
Quarterly net sales totaled $5.196 billion, higher than the previous year's sales of $3.756 billion, and surpassed Seven Wall Street analysts' consensus revenue estimate of $5.09 billion.[5] Net sales for the quarter rose to $1.79 billion from $1.72 billion in the same quarter of last year. Another competitor, Luxembourg-based Arcelor Mittal (MT) is due to release its quarterly results on May 14.[5] Quarterly net sales increased to $4.97 billion from $3.77 billion recorded in the comparable quarter of the previous year.[5]
Net sales for the third quarter were $178.4 million, compared to $189.2 million in the previous year quarter.[6]
Net sales are projected to be in the range of $895 million to $910 million.[6]
The Pittsburgh-based company posted net income of $235 million, or $1.98 a share, compared with $273.[10] The company said the quarterly results were benefited from a gain of $23 million, or $0.37 per share, from the partial resolution with Marathon Oil Corp. of certain tax matters related to the MAP Transaction.[6] Looking forward, for the full-year 2008, the company said it expects earnings per share in the range of $0.38 to $0.45.[6]
STOCK PERFORMANCE: Shares rose 4.9 percent to $126.87 during the first quarter. [8] Shares of U.S. Steel fell $4.43, or 2.9 percent, to $148.57 in early trading Tuesday.[2] Income from operations in U.S. Steel's European business dropped to $161 million, from $206 million and in the tubular division, which manufactures pipes, it fell by half to $51 million from $102 million.[4]
ANALYST TAKE: Deutsche Bank-North America analyst David S. Martin named United States Steel his top pick in his "Steel in the Americas" sector. "We believe the company is well positioned to benefit from rising steel prices, its integrated business model, cost reductions, and acquisition integration," he wrote in an April 7 analyst note. "In addition, (U.S. Steel) appears to have its 'act together' operationally which remains a primary concern for investors."[8] United States Steel Corp. said Tuesday first-quarter net income slid 14% despite high steel prices as profit margins narrowed.[10]
TROY, Mich. (AP) _ ArvinMeritor Inc., which makes parts for commercial and light vehicles, said Tuesday it swung to a fiscal second-quarter profit on foreign currency translation gains and higher international sales. WICHITA, Kan. (AP) _ Aircraft component maker Spirit AeroSystems Holdings Inc. said Tuesday its first-quarter profit rose 21 percent, helped by increased revenue and operating efficiencies.[1] Sales rose 38 percent to $5.2 billion from $3.76 billion, helped by increases in the flat-rolled and European segments.[9] Sales rose to $5.2 billion from $3.8 billion, the Pittsburgh-based steelmaker said.[4] Sales for the three-month period rose to $5.2 billion from $3.8 billion.[3]
Total sales for the quarter increased to $2.059 billion from $1.915 billion a year ago.[6] Net sales for the quarter grew over last year and exceeded Wall Street expectations.[5]
Total interest income dropped to $64.97 million from $67.96 million for the year ago quarter.[7] Quarterly revenues grew to $185.4 million from $117.48 million in the comparable period last year.[6] Total operating revenues increased to $4.26 billion from $3.64 billion a year-ago.[6]
Purchasingdata.com forecasts a rise in hot-rolled coil steel of 29 percent to $850 per ton in the second quarter. [8] The company projects lower pension expenses in the second quarter but warns that volatility in net interest and other financial costs could increase.[8] Operating levels and shipments are expected to be comparable to the first quarter, while raw materials and energy costs are expected to increase.[5]
Looking ahead, the company expects second quarter Flat-rolled results to improve significantly from the first quarter as higher spot prices are realized throughout the quarter.[5] Domestically, steel demand remains strong for oil and gas pipeline work, petroleum drilling, bridge replacement and highway construction. These factors have sent steel prices dramatically higher during the first quarter.[8]
At March 31, 2008, U. S. Steel had open euro-U.S. dollar forward sales contracts with a total notional value of about $571 million. [5] OVERVIEW: Like other U.S. steelmakers, U.S. Steel is expected to benefit from a weak dollar and an increase in demand from emerging markets demand.[8]
Profit from European operations, which has driven strong growth at the company, fell 22 percent. [2] The company noted that the net interest and other financial costs would continue to include foreign currency accounting remeasurement effects, partially offset by the use of euro-U.S. dollar derivatives.[5]
SOURCES
1. Earnings roundup: US Steel, Office Depot | Chron.com - Houston Chronicle
2. The Associated Press: Declines in Europe, tubular lower US Steel profit
3. United States Steel 1Q net income falls, but exceeds Wall Street's estimate - Forbes.com
4. U.S. Steel profit slips, sees better second quarter | Reuters
5. United States Steel Q1 Profit Falls - Update [X] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news .
6. RTTNews - Quick facts Articles, Positive EPS Surprises, News Analysis, Earnings, Audio News.
7. RTTNews - Quick facts Articles, Positive EPS Surprises, News Analysis, Earnings, Audio News.
8. Earnings Preview: US Steel seen posting strong 1st quarter
9. U.S. Steel profit falls, but tops projections - Birmingham Business Journal:
10. Free Preview - WSJ.com
GENERATE A MULTI-SOURCE SUMMARY ON THIS SUBJECT:
Please WAIT 10-20 sec for the new window to open...
You might want to EDIT the default search query below:
Get more info on US Steel profit dips on Europe, tubular declines by using the iResearch Reporter tool from Power Text Solutions.
 |
|  |
|
