US steel declared its quarter results. The results were cheered by the investors as the company was able to better the numbers projected by analysts. However, the company has not been able to move into profitability. The company recorded its third consecutive unprofitable year, reporting a 2011 loss of $68 million, or 47 cents per share, vs. a 2010 loss of $482 million, or $3.36 per share. Top line of the company rose 14 percent to $19.88 billion while shipments were flat at 22.3 million tons. Increase in key raw materials was the factor beyond the negative numbers by the company. The company has also to contend with lower shipments
U.S. Steel reported a net loss of $226 million, or $1.57 per share, compared with a loss of $249 million, or $1.74 per share, in the same quarter in 2010. Excluding one-time charges that included a $51 million foreign-currency loss and an environmental remediation charge, U.S. Steel posted an adjusted loss of $164 million, or $1.14 per share. Revenue rose 12 percent to $4.82 billion from $4.3 billion.
The company had also to contend with lower shipments over to Europe and also face massive losses in places like Serbia. This affected the margins of the company. The company said it received a “nominal” price for the operations from the Serbian government, which said Friday it would repurchase the plants for $1 after selling them to U.S. Steel for $33 million in 2003.
The company also gave a negative outlook on future earnings with a negative outlook on automobile and heavy machinery equipment manufacturers, appliance makers and the energy industry. This will affect the future earnings of the company. Analysts have also given a negative outlook on the stock. We maintain a negative outlook on the stock based on the discussion from the management.