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United States Steel Corporation Reports 2002 Fourth Quarter and Full-Year ResultsPRNewswire-FirstCall United States Steel Corporation (NYSE: X) today issued the following: Earnings Highlights
(Dollars in millions except per share data)
4Q 4Q
2002 2001 2002 2001
Revenues and other income $1,899 $1,414 $7,054 $6,375
Net income (loss)
per diluted share $0.12 $(1.95) $0.64 $(2.45)
Net income (loss) adjusted
per diluted share $0.44 $(1.36) $0.70 $(2.89)
Net income (loss) $12 $(174) $62 $(218)
Adjustments for special items
(pretax):
Pension settlement loss 90 - 100 -
Asset impairments - receivables - 72 14 146
Asset impairments - intangible
asset - 20 - 20
Costs related to separation - 16 - 25
Costs related to Fairless shutdown - 9 1 38
Federal excise tax refund (2) - (38) -
Insurance recoveries related
to USS-POSCO fire (19) (23) (39) (46)
Gain on VSZ share sale (20) - (20) -
Reversal of litigation accrual - - (9) -
Gain on Transtar reorganization - - - (68)
Prior year tax adjustments - (9) - (62)
Tax effect of special items (17) (32) (3) (92)
Net income (loss) adjusted
for special items $44 $(121) $68 $(257)
United States Steel Corporation (NYSE: X) recorded fourth quarter 2002 net income of $12 million, or 12 cents per diluted share, compared with a net loss of $174 million, or $1.95 per diluted share, in fourth quarter 2001. Adjusted fourth quarter 2002 net income was $44 million, or 44 cents per diluted share, compared with an adjusted net loss of $121 million, or $1.36 per diluted share in fourth quarter 2001. For the year 2002, U. S. Steel's net income was $62 million, or 64 cents per diluted share, reflecting a significant improvement from 2001's net loss of $218 million, or $2.45 per diluted share. Fourth quarter 2002 income from operations before special items was $54 million, or $15 per ton, substantially improved from an operating loss of $158 million, or $51 per ton, in fourth quarter 2001. For full-year 2002, the company recorded income from operations before special items of $140 million, or $10 per ton, versus a loss of $290 million, or $21 per ton, in 2001. Commenting on 2002 results, U. S. Steel Chairman Thomas J. Usher said, "Our return to profitability in 2002 can be attributed to a number of positives, including a dramatic improvement in our domestic flat-rolled business and the continued solid performance of U. S. Steel Kosice in the Slovak Republic. While our tubular business experienced a difficult marketplace throughout the year, it did an excellent job of managing costs and operations. Ongoing company-wide cost reduction efforts exceeded our goals, and we made significant progress toward implementing our strategies of growing our value-added capabilities and expanding globally as we pursued acquisition opportunities both in the United States and in Central Europe." Usher also noted that, since its implementation in March 2002, President Bush's three-year Section 201 remedy has helped improve domestic industry conditions and has aided consolidation efforts under way within the domestic steel industry. Effective with fourth quarter 2002, U. S. Steel has five reportable segments: Flat-rolled Products (Flat-rolled); Tubular Products (Tubular); U. S. Steel Kosice (USSK); Straightline Source (Straightline); and USS Real Estate (Real Estate). The composition of the Flat-rolled, Tubular and USSK segments remains unchanged from prior periods. The Straightline and Real Estate segments were previously reflected in Other Businesses. The presentation of Straightline and Real Estate as separate segments results from the application of quantitative threshold tests under generally accepted accounting principles rather than any fundamental change in the management or structure of the businesses. Comparative 2001 results have been conformed to the current year presentation. U. S. Steel's Flat-rolled segment recorded fourth quarter income from operations of $8 million, or $3 per ton, and a full-year 2002 loss from operations of $31 million, or $3 per ton. These were substantial improvements from the respective fourth quarter and full-year 2001 losses from operations of $154 million, or $76 per ton, and $536 million, or $61 per ton. The average realized price in fourth quarter 2002 was $431 per ton, up $35 per ton from the year-earlier quarter, and slightly higher than in the 2002 third quarter. Fourth quarter 2002 shipments were 2.4 million net tons, up 19 percent from 2.0 million net tons in 2001's fourth quarter, but down 8 percent from third quarter 2002. As previously disclosed, Flat-rolled results in the fourth quarter were negatively impacted by the acceleration of several blast furnace outages that were originally scheduled to occur in 2003 and by higher natural gas prices. Costs related to these outages totaled approximately $27 million. The Tubular segment recorded a loss from operations of $9 million, or $59 per ton, in the 2002 fourth quarter, compared with income from operations of $9 million, or $50 per ton, in the fourth quarter of 2001. For the year, this segment realized income from operations of $4 million, or $5 per ton, compared with income of $88 million, or $86 per ton, in 2001. Fourth quarter 2002 Tubular shipments of 152,000 net tons were down significantly from 180,000 net tons in fourth quarter 2001 and from 216,000 net tons in third quarter 2002. The quarter's average realized price fell $13 per ton from $681 per ton in fourth quarter 2001, but was up slightly from the prior 2002 quarter. The USSK segment recorded fourth quarter income from operations of $45 million, or $42 per net ton, compared with $2 million, or $2 per net ton, in the 2001 fourth quarter. Fourth quarter 2002 shipments totaled 1.1 million net tons, up from 0.9 million net tons in the comparable 2001 quarter, and moderately higher than third quarter 2002 levels. USSK's average realized price in the fourth quarter rose to $306 per net ton, an increase of $55 per net ton versus the 2001 fourth quarter and $16 per net ton versus the 2002 third quarter. These increases reflect price increases implemented during 2002 for most products, as well as favorable foreign currency exchange effects. These favorable currency exchange effects on average realized prices were partially offset by unfavorable effects of these exchange rates on operating costs. For the year, USSK's income from operations was $110 million, or $28 per net ton, versus $123 million, or $33 per net ton, in the prior year. USSK's 2002 results included losses on conversion operations at Sartid in Serbia and business development expenses associated with Sartid and other expansion opportunities in Europe. The Straightline segment includes the operating results of U. S. Steel's technology-enabled distribution business that serves steel consuming customers primarily in the eastern and central United States. The Straightline segment reported a fourth quarter loss from operations of $13 million, compared with a loss of $7 million in the year-earlier quarter when Straightline commenced shipments to customers. Straightline had full-year operating losses of $41 million and $17 million, respectively, during 2002 and 2001. The Real Estate segment includes the operating results of U. S. Steel's domestic mineral interests that are not assigned to other operating units; timber properties; and residential, commercial and industrial real estate that is managed and developed for sale or lease. The Real Estate segment reported income from operations of $20 million in the 2002 fourth quarter, up from $14 million in the year-earlier quarter. This increase was primarily due to increased land sales. For the year, Real Estate posted operating income of $57 million, reflecting a decrease of $12 million from 2001. The decline resulted mainly from lower mineral interest royalties. Units comprising U. S. Steel's Other Businesses, which are involved in the production and sale of coal, coke and iron-bearing taconite pellets; transportation services; and engineering and consulting services, had fourth quarter 2002 income from operations of $3 million, compared with a loss from operations of $22 million in fourth quarter 2001. For the year, these units reported income from operations of $41 million, compared with a loss of $17 million in 2001. Available sources of liquidity at the end of 2002 were $1.03 billion, an increase of $326 million from year-end 2001, primarily due to the equity offering that was completed in May 2002 and improved operations during the year. Looking ahead, shipments for the Flat-rolled segment in the 2003 first quarter are expected to improve somewhat from fourth quarter levels. The first quarter average realized price is also expected to improve slightly from the previous quarter. First quarter costs, however, will continue to be negatively affected by higher prices for natural gas. For full-year 2003, Flat-rolled shipments are expected to approximate 10.1 million net tons. For the Tubular segment, first quarter 2003 shipments are projected to be up substantially from the 2002 fourth quarter, and the average realized price is expected to be lower than in the fourth quarter. Shipments for full-year 2003 are expected to be approximately 1.1 million net tons, as higher energy prices should spur a recovery in North American drilling activity in the second half of 2003. USSK's first quarter 2003 shipments are expected to increase slightly from the 2002 fourth quarter, and shipments for the full year are projected to be approximately 4.1 million net tons. USSK's average realized price in the first quarter should improve slightly from the fourth quarter due primarily to a January 1, 2003, price increase for all products. In the fourth quarter 2002, as previously reported, U. S. Steel recorded a pretax pension settlement loss of $90 million for the nonunion qualified plan and, under the accounting rules related to additional minimum pension liabilities, a charge to equity of $748 million for the union plan. In addition, based on preliminary actuarial information for 2003, the company expects annual net periodic pension costs to be $65 million and annual retiree medical and life insurance costs to be $210 million. In 2002, U. S. Steel recorded a credit of $103 million for pensions (excluding settlement charges of $100 million) and a $138 million expense for retiree medical and life insurance (excluding multiemployer and other plans). Pension costs are expected to increase from 2002 primarily because of lower plan assets, average asset return assumptions that have been reduced by 0.6 percentage points to 8.2 percent, and a discount rate that has been reduced from 7.0 percent to 6.25 percent. The anticipated increase in retiree medical and life insurance costs primarily reflects unfavorable health care claims cost experience in 2002 for union retirees, the use of the lower discount rate and higher assumed medical cost inflation. U. S. Steel recently announced that it has signed an Asset Purchase Agreement with National Steel Corporation to acquire substantially all of National's steelmaking and finishing assets for approximately $950 million, which includes the assumption of liabilities of approximately $200 million. Net working capital will account for at least $450 million of this amount. This transaction is contingent on the successful negotiation of a new labor contract with the United Steelworkers of America covering the National employees, the approval of the bankruptcy court and other customary regulatory approvals. A court hearing to consider the Asset Purchase Agreement and related matters is scheduled for January 30, 2003. Work continues on several potential transactions to dispose of non- strategic assets. These include the sale of the raw materials and transportation businesses to an entity to be formed by affiliates of Apollo Management L.P., which U. S. Steel estimates would result in a pretax loss of up to $300 million; the sale of U. S. Steel Mining; and the contribution of certain timber properties to one or more employee benefit plans. ***** This release contains forward-looking statements with respect to market conditions, operating costs, shipments and prices, benefit costs, a potential acquisition and potential asset dispositions. Some factors, among others, that could affect 2003 market conditions, costs, shipments and prices include import levels, future product demand, prices and mix, global and company steel production, plant operating performance, domestic natural gas prices and usage, the resumption of operation of steel facilities sold under the bankruptcy laws, and U.S. and European economic performance and political developments. Steel shipments and prices can be affected by imports and actions of the U.S. Government and its agencies. Factors that may affect USSK results are similar to domestic factors, including excess world supply, plus foreign currency fluctuations, matters peculiar to international marketing such as tariffs, and completion of facility projects at USSK. Factors that may affect the amount of the expected pension and retiree medical and life insurance costs in 2003 include pension fund investment performance, liability changes and interest rates. Factors that may impact the occurrence and timing of the acquisition of National's steelmaking and finishing assets include the negotiation of a new labor agreement between U. S. Steel and the United Steelworkers of America covering employees of the National facilities, receipt of necessary clearances from the Federal Trade Commission and the U.S. Department of Justice under the Hart-Scott-Rodino Antitrust Improvement Act, approval by the Surface Transportation Board under the Surface Transportation Act for the acquisition of the Delray Connecting Railroad Company, the absence of any injunctions blocking the acquisition, and the results of the auction process contemplated in National's bankruptcy court filing. Consummation of the asset dispositions will depend upon a number of factors including negotiation of definitive agreements; regulatory approvals, including Department of Labor approvals for the benefit plan contributions; and the ability of the purchasers to arrange financing. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, cautionary statements identifying important factors, but not necessarily all factors, that could cause actual results to differ materially from those set forth in the forward-looking statements have been included in the Form 10-K of U. S. Steel for the year ended December 31, 2001, and in subsequent filings for U. S. Steel. A Statement of Operations, Other Financial Data and Preliminary Supplemental Statistics for U. S. Steel are attached. The company will conduct a conference call on fourth quarter earnings on Tuesday, January 28, at 1 p.m. EST. To listen to the web cast of the conference call, visit the U. S. Steel web site, www.ussteel.com, and click on the "Investors" button. Replays of the web cast will be available through February 11. For more information on U. S. Steel, visit our web site at www.ussteel.com. UNITED STATES STEEL CORPORATION
STATEMENT OF OPERATIONS (Unaudited)
-----------------------------------
Fourth Quarter Twelve Months
Ended Ended
December 31 December 31
(Dollars in millions,
except per share
amounts) 2002 2001 2002 2001
--------------------------------------------------------------------------
REVENUES AND OTHER INCOME:
Revenues $1,852 $1,398 $6,949 $6,286
Income from investees 22 13 33 64
Net gains on disposal
of assets 22 2 29 22
Other income 3 1 43 3
------ ------ ------ ------
Total revenues and
other income 1,899 1,414 7,054 6,375
------ ------ ------ ------
COSTS AND EXPENSES:
Cost of revenues 1,638 1,452 6,156 6,166
Selling, general and
administrative expenses 172 116 417 270
Depreciation, depletion
and amortization 84 98 350 344
------ ------ ------ ------
Total costs and
expenses 1,894 1,666 6,923 6,780
------ ------ ------ ------
INCOME (LOSS) FROM
OPERATIONS 5 (252) 131 (405)
Net interest and other
financial costs 30 67 115 141
------ ------ ------ ------
INCOME (LOSS) BEFORE
INCOME TAXES (25) (319) 16 (546)
Income tax benefit (37) (145) (46) (328)
------ ------ ------ ------
NET INCOME (LOSS) $12 $(174) $62 $(218)
====== ====== ====== ======
COMMON STOCK DATA:
Net income (loss),
per share
- Basic and diluted $.12 $(1.95) $.64 $(2.45)
Weighted average shares,
in thousands
- Basic 102,349 89,223 97,426 89,223
- Diluted 102,349 89,223 97,428 89,223
Dividends paid per share:
United States Steel
Corporation Common
Stock $.05 - $.20 -
USX - U. S. Steel Group
Common Stock - $.10 - $.55
Note: Net income per common share for the periods of 2002 are based on
the weighted average number of common shares outstanding during the
periods. Net loss per common share for the periods of 2001 are
based on outstanding common shares at December 31, 2001, the date
of the Separation.
The following notes are an integral part of this financial statement.
UNITED STATES STEEL CORPORATION
SELECTED NOTES TO FINANCIAL STATEMENT
-------------------------------------
1. United States Steel Corporation (U. S. Steel) is engaged domestically
in the production, sale and transportation of steel mill products,
coal, coke and taconite pellets (iron ore); the management of mineral
resources; the management and development of real estate; and
engineering and consulting services and, through U. S. Steel Kosice
(USSK) in the Slovak Republic, in the production and sale of steel
mill products and coke primarily for the Central European market.
Prior to December 31, 2001, the businesses of U. S. Steel comprised
an operating unit of USX Corporation, now named Marathon Oil
Corporation (Marathon). Marathon had two outstanding classes of
common stock: USX-Marathon Group common stock, which was intended to
reflect the performance of Marathon's energy business, and USX-U. S.
Steel Group common stock (Steel Stock), which was intended to reflect
the performance of Marathon's steel business. On December 31, 2001,
U. S. Steel was capitalized through the issuance of 89.2 million
shares of common stock to the holders of Steel Stock in exchange for
all outstanding shares of Steel Stock on a one-for-one basis (the
Separation).
The accompanying Statement of Operations includes the fourth quarter
and twelve months of 2002 results of operations of U. S. Steel on a
stand-alone basis, while the fourth quarter and twelve months of 2001
results of operations represent a carve-out presentation of the
businesses comprising U. S. Steel and are not intended to be a
complete presentation of the results of operations of U. S. Steel on
a stand-alone basis. The results of operations for the 2001 periods
contain certain transactions related to interest and other financial
costs that were attributed to U. S. Steel by Marathon based on U. S.
Steel's cash flows and its capital structure. Corporate general and
administrative costs were allocated to U. S. Steel during the periods
of 2001 based upon utilization or other methods that management
believed to be reasonable and which considered certain measures of
business activities, such as employment, investments and revenues.
Income taxes were allocated to U. S. Steel during the periods of 2001
in accordance with Marathon's tax allocation policy. In general,
such policy provided that the consolidated provision and related tax
payments or refunds be allocated based principally upon the financial
income, taxable income, credits, preferences and other amounts
directly related to U. S. Steel.
Effective January 1, 2002, net pension and other postretirement costs
associated with active employees at operating locations are reflected
in cost of revenues. Net costs and credits associated with corporate
headquarters personnel and all retirees are reflected in selling,
general and administrative expenses. Prior year data has been
reclassified to conform to the current year presentation, which
resulted in a decrease in cost of revenues and an increase in
selling, general and administrative expenses of $41 million and
$162 million for the fourth quarter and twelve months of 2001,
respectively.
2. In 2002, U. S. Steel recognized a pretax gain of $38 million,
associated with the recovery of black lung excise taxes that were
paid on coal export sales during the period 1993 through 1999. This
gain is included in other income in the statement of operations and
resulted from a 1998 federal district court decision that found such
taxes to be unconstitutional. Of the $38 million recognized,
$11 million represented the interest component of the claim.
3. On March 1, 2001, U. S. Steel completed the purchase of the tin mill
products business of LTV Corporation (LTV), which is now operated as
East Chicago Tin. In this noncash transaction, U. S. Steel assumed
approximately $66 million of certain employee-related obligations
from LTV. The acquisition was accounted for using the purchase
method of accounting. Results of operations for 2001 included the
operations of East Chicago Tin from the date of acquisition. In the
fourth quarter of 2001, following the discontinuation of LTV
operations at East Chicago, U. S. Steel recorded a pretax charge of
$20 million to impair an intangible asset related to a five-year
agreement for LTV to supply U. S. Steel with pickled hot bands
entered into in conjunction with the acquisition of the LTV's tin
mill products business. The impairment charge is reflected in
depreciation, depletion and amortization.
On March 23, 2001, Transtar, Inc. (Transtar) completed a
reorganization with its two voting shareholders, U. S. Steel and
Transtar Holdings, L.P. (Holdings), an affiliate of Blackstone
Capital Partners L.P., which resulted in U. S. Steel becoming the
sole owner of Transtar and certain of its subsidiaries while Holdings
became the owner of the other subsidiaries. U. S. Steel recorded
$68 million in income from investees to reflect its share of the gain
recognized by Transtar as a result of the reorganization. Also, in
connection with this transaction, U. S. Steel recognized a favorable
deferred tax adjustment of $33 million related to its investment in
the stock of Transtar. U. S. Steel previously accounted for its
investment in Transtar under the equity method of accounting.
4. U. S. Steel has a 16% investment in Republic Technologies
International Holdings, LLC (Republic) which was accounted for under
the equity method of accounting until the first quarter of 2001 when
investments in and advances to Republic were reduced to zero.
Republic filed a voluntary petition for bankruptcy in April of 2001
to reorganize under Chapter 11 of the U.S. Bankruptcy Code. Due to
Republic's filing for bankruptcy, further deterioration of Republic's
financial position and progression in the bankruptcy proceedings,
U. S. Steel recorded pretax charges reflected as reductions in
revenues of $74 million in the first quarter of 2001 and $26 million
in the fourth quarter of 2001 to impair trade accounts receivable
from Republic and an additional $4 million in the fourth quarter of
2001 for receivables from another bankrupt steel company. Additional
pretax charges of $42 million in the fourth quarter of 2001 and
$14 million in the second quarter of 2002 were recorded to impair
retiree medical claim reimbursements owed by Republic. These charges
are reflected in selling, general and administrative expenses. At
December 31, 2002, U. S. Steel had no remaining financial exposure to
Republic.
5. The income tax benefit in 2002 and 2001 reflected pretax losses from
domestic operations and pretax income from USSK for which virtually
no income tax provision was recorded. In addition to a $4 million
deferred tax charge related to a newly enacted state tax law, an
$8 million tax benefit related to prior years' taxes was recorded
during 2002.
The income tax benefit in 2001 included a $33 million deferred tax
benefit related to the Transtar reorganization, as discussed in
Note 3. In addition, net interest and other financial costs in 2001
included a favorable adjustment of $67 million and the income tax
benefit included an unfavorable adjustment of $15 million, both of
which were related to prior years' taxes.
6. Selling, general and administrative expenses for the fourth quarter
and twelve months of 2002 included pretax pension settlement losses
of $90 million and $100 million, respectively. Also included in the
twelve months of 2002 is a $14 million pretax charge related to
reserving Republic receivables, as discussed in Note 4.
Selling, general and administrative expenses for the fourth quarter
and twelve months of 2001 included $5 million and $14 million,
respectively, of Separation costs for professional fees and
$11 million in both periods for Separation costs related to a
Voluntary Early Retirement Program. Also included in the fourth
quarter and twelve months of 2001 is a pretax charge of $42 million
related to reserving retiree medical claim reimbursements from
Republic, as discussed in Note 4.
7. Income from investees included pretax gains of $19 million and
$23 million for the fourth quarter of 2002 and 2001, respectively,
and $39 million and $46 million for the twelve months of 2002 and
2001, respectively, for U. S. Steel's share of insurance recoveries
related to the May 31, 2001 fire at the USS-POSCO joint venture.
8. In October 2002, U. S. Steel granted an option to purchase its shares
of VSZ a.s. (VSZ). U. S. Steel subsequently sold these shares. Cash
proceeds of approximately $31 million were received in consideration
for the option and the sale of the shares, which resulted in a pretax
gain of approximately $20 million, which is included in net gains on
disposal of assets. U. S. Steel previously accounted for its
investment in VSZ under the cost method.
9. On August 14, 2001, U. S. Steel announced its intention to
permanently close the cold rolling and tin mill operations at its
Fairless Works. In the fourth quarter and twelve months of 2001,
U. S. Steel recorded a pretax charge of $9 million and $38 million,
respectively, relative to the shutdown.
10. Statement of Financial Accounting Standards No. 87 "Employer's
Accounting for Pensions" provides that if, at any plan measurement
date, the fair value of plan assets is less than the plan's
accumulated benefit obligation (ABO), the sponsor must establish a
minimum liability at least equal to the amount by which the ABO
exceeds the fair value of the plan assets and any pension asset must
be removed from the balance sheet. The sum of the liability and
pension asset is offset by the recognition of an intangible asset or
as a direct charge to stockholders' equity, net of tax effects. Such
adjustments have no direct impact on earnings per share or cash. As
of December 31, 2002, the fair value of plan assets for the U. S.
Steel pension plan for union employees was $4.5 billion. The ABO for
this plan at December 31, 2002, exceeded the fair value of plan
assets, resulting in a required minimum liability adjustment charge
to equity of $748 million.
UNITED STATES STEEL CORPORATION
OTHER FINANCIAL DATA (Unaudited)
-----------------------------------
Cash Flow Data (In millions) 2002 2001
--------------------------------------------------------------------------
Cash from operating activities:
Net income (loss) $62 $(218)
Depreciation 350 344
Working capital changes (71) 577
Other operating activities (62) (34)
------ ------
Total 279 669
------ ------
Cash from (used in) investing activities:
Capital expenditures (258) (287)
Other investing activities (51) 48
------ ------
Total (309) (239)
------ ------
Cash from (used in) financing activities
and foreign exchange rate changes 126 (502)
------ ------
Total net cash flow 96 (72)
Cash at beginning of the year 147 219
------ ------
Cash at end of the year $243 $147
====== ======
Dec. 31 Dec. 31
Balance Sheet Data (In millions) 2002 2001
--------------------------------------------------------------------------
Cash and cash equivalents $243 $147
Other current assets 2,198 1,926
Property, plant and equipment - net 2,978 3,084
Pension asset 1,654 2,745
Other assets 905 435
------ ------
Total assets $7,978 $8,337
====== ======
Current liabilities $1,371 $1,259
Long-term debt 1,408 1,434
Employee benefits 2,601 2,008
Other long-term liabilities 569 1,130
Stockholders' equity 2,029 2,506
------ ------
Total liabilities and stockholders' equity $7,978 $8,337
====== ======
UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
-----------------------------------------------
Fourth Quarter Year
Ended December 31 Ended December 31
(Dollars in millions) 2002 2001 2002 2001
--------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Flat-rolled Products $8 $(154) $(31) $(536)
Tubular Products (9) 9 4 88
U. S. Steel Kosice 45 2 110 123
Straightline (13) (7) (41) (17)
Real Estate 20 14 57 69
Other Businesses 3 (22) 41 (17)
----- ----- ----- -----
Income (Loss) from
Operations before
special items 54 (158) 140 (290)
Special Items:
Pension settlement
loss (90) - (100) -
Asset impairments -
receivables - (72) (14) (146)
Asset impairments -
intangible assets - (20) - (20)
Costs related to
Separation - (16) - (25)
Costs related to
Fairless shutdown - (9) (1) (38)
Federal excise
tax refund 2 - 38 -
Insurance recoveries
related to USS-POSCO
fire 19 23 39 46
Gain on VSZ share sale 20 - 20 -
Reversal of litigation
accrual - - 9 -
Gain on Transtar
reorganization - - - 68
----- ----- ----- -----
Total Income (Loss)
from Operations $5 $(252) $131 $(405)
CAPITAL EXPENDITURES
Flat-rolled Products $19 $18 $42 $129
Tubular Products 24 5 52 5
U. S. Steel Kosice 52 30 97 61
Straightline 1 5 8 19
Real Estate - 1 1 2
Other Businesses 12 31 58 71
----- ----- ----- -----
Total $108 $90 $258 $287
OPERATING STATISTICS
Average realized price:
($/net ton)(a)
Flat-rolled Products $431 $396 $410 $397
Tubular Products 668 681 651 685
U. S. Steel Kosice 306 251 276 260
Steel Shipments:(a)(b)
Flat-rolled
Products 2,400 2,020 9,900 8,775
Tubular Products 152 180 773 1,022
U. S. Steel
Kosice 1,079 873 3,949 3,714
Raw Steel-Production:
(b)
Domestic
Facilities 2,609 2,160 11,535 10,093
U. S. Steel
Kosice 1,142 837 4,394 4,051
Raw Steel-Capability
Utilization:(c)
Domestic
Facilities 80.8% 67.0% 90.1% 78.9%
U. S. Steel
Kosice 90.6% 66.4% 87.9% 81.0%
Domestic iron ore
shipments(b)(d) 4,100 3,319 16,267 14,913
Domestic coke
shipments(b)(d) 1,323 1,040 5,185 4,731
-----------
(a) Excludes intersegment transfers.
(b) Thousands of net tons.
(c) Based on annual raw steel production capability of 12.8 million net
tons for domestic facilities and 5.0 million net tons for U. S. Steel
Kosice.
(d) Includes intersegment transfers.
SOURCE: United States Steel Corporation CONTACT: Media, Mike Dixon or John Armstrong, +1-412-433-6870, or Web site: http://www.ussteel.com/ Company News On-Call: |
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