U.S. Steel Corp. reported fourth-quarter earnings well above Wall Street estimates Tuesday as its continuing “Carnegie Way” efficiency efforts helped results.
For 2015, the company projects a decline in earnings before interest, taxes, depreciation and amortization.
In late trading, U.S. Steel shares were up 8.2% at $23.01.
The company said Monday that it would temporarily curtail operations at two plants in Alabama and one in Texas, potentially affecting 1,918 workers, as the collapse of oil prices continues to punish key segments of American industry.
For the quarter, U.S. Steel earned $275 million, or $1.83 a share, compared with $297 million, or $1.93 a share, a year earlier. Earnings excluding items were $1.82 a share. Net sales fell to $4.07 billion from $4.27 billion.
Analysts polled by Thomson Reuters had projected earnings of 87 cents a share on sales of $3.965 billion.
The company previously said maintenance and repair costs would affect its flat-rolled segment during the fourth quarter.
“We are pleased to report another quarter of strong operating results, which continue to reflect the significant and sustainable improvement in our earnings power from our Carnegie Way transformation efforts,” the company said.
Since taking over in 2013, U.S. Steel Chief Executive Mario Longhi has aggressively cut costs and restructured operations. His turnaround plan generated $575 million in benefits in 2014, the company said.
Full-year adjusted Ebitda was $1.7 billion. For 2015, U.S. Steel projects $1.1 billion to $1.4 billion.
The company said “we face significant challenges from dramatically lower oil prices, lower steel prices, and the impact of the stronger U.S. dollar and global overcapacity on imports and our operations.” But it added that it expects its Carnegie Way efforts to produce “additional benefits in 2015, including healthy cash flows, strong liquidity, and sustaining our improved balance sheet.”
Source: The Wall Street Journal
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