U.S. Steel Shares Drop After Big 4Q Loss
United States Steel Corp. on Tuesday reported a fourth-quarter loss of $999 million, reversing a profit a year ago, as revenue plunged 37 percent and the company blamed cheap subsidized imports for hurting the price of flat-rolled steel.
The Pittsburgh-based company said it had a loss of $6.83 per share, versus a profit of $1.83 per share a year ago. Losses, excluding costs such as the major write-down of its deferred tax assets, came to 23 cents per share.
The average estimate of nine analysts surveyed by Zacks Investment Research was for a loss of 85 cents per share.
The steel maker saw revenue drop to $2.57 billion, which still beat Street forecasts. Three analysts surveyed by Zacks expected $2.49 billion.
Shares fell 77 cents, or 9.9 percent, to $7 in after-hours trading following the release of results. That's down about 67 percent from 12 months ago.
CEO Mario Longhi said in a statement the company hopes to trim costs this year, saying it is "facing significant headwinds and uncertainty in many of the markets we serve." The company forecast the year to break-even on an adjusted basis.
Longhi also said low and volatile oil prices have resulted in a continuing decrease in drilling and rig counts, while inventory remains high.
“We are making the products our customers need, but the operating levels at our facilities remain at the lowest levels we have seen since 2009," he said.
For 2015, the company reported a loss of $1.51 billion, or $10.32 per share, swinging to a loss in the period. Revenue fell to $11.57 billion, down 34 percent from $17.51 billion the previous year.
The Associated Press contributed to this report.