by Christopher Freeburn | July 31, 2012 2:22 pm
U.S. Steel (NYSE:X) said it earned $101 million during the second quarter. That was down more than 50% compared to a $222 million profit in the same period last year, while revenue dipped to $5 billion, down from $5.1 billion in 2011.
However, adjusted EPS for the quarter was 69 cents, which topped the 47 cents Wall Street had forecast, Reuters noted.
Investors liked the results. Shares of U.S. Steel jumped more than 8% in Tuesday afternoon trading.
The company predicted that results for the third quarter would be lower due to economic weakness in Europe, North America and emerging markets.
Company officials also expect steel prices to fall across all of its product categories — tubular, European and flat-rolled — and they see competition from imported steel products as a factor in the price declines.
Analysts cited by Reuters called U.S. Steel’s outlook “very bleak,” but noted that it still forecast a profit for the current quarter.
Other domestic steelmakers felt the pinch of a weakening economy during the last quarter. AK Steel (NYSE:AKS) announced a second-quarter loss with revenues dropping 14%, while Steel Dynamics (NASDAQ:STLD) saw its second-quarter profit cut in half.
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