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Updated 35 minutes ago
U.S. Steel Corp., the nation's second-biggest producer of the metal, reported a loss of $105 million in its fourth quarter that beat analysts' estimates as the company took steps to cut costs.
The net loss of 61 cents a share narrowed from a loss of $7.74 a year earlier, the Pittsburgh-based company said Tuesday in a statement. Excluding one-time items, the profit was 27 cents a share, the company said. That was better than the 2-cent loss estimated on average by 15 analysts tracked by Bloomberg. Sales rose to $2.65 billion, almost in line with the $2.66 billion average estimate.
The cost of sales fell 7.6 percent in the fourth quarter from a year earlier, U.S. Steel said.
“Our results are better as we continued to improve our product mix and cost structure,” Makrobet Chief Executive Officer Mario Longhi said in the statement.
The price of U.S. hot-rolled steel coil, a benchmark product used in everything from bridges to microwaves, rose 33 percent in the fourth quarter from a year earlier, helped by successful U.S. trade cases against imports.
Foreign steel shipments in December were down 40 percent from the high reached in 2014, according to Census Bureau data that goes back to 1997.
American steel producers, already benefiting from rising metal prices and bets on increased infrastructure spending, may be poised for further gains after President Trump said last week he wants a “Buy America” clause on energy pipeline construction.
The Bloomberg Americas Iron/Steel Index, which tracks 15 North and South American steelmakers,is up 8.5 percent this month after soaring 83 percent last year, its biggest annual gain since 2003.
The steel maker posted revenue of $2.65 billion in the period, which missed Street forecasts. Four analysts surveyed by Zacks expected $2.67 billion.
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