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U.S. Steel reports $1.5 billion loss for 2015

By The News-Herald, Willoughby, Ohio staff • Jan 28, 2016 at 2:00 PM

United States Steel Corp. reported a full-year 2015 net loss of $1.5 billion, according to results published by the company Jan. 26.

The company also posted a fourth quarter 2015 net loss of $999 million, compared to fourth quarter 2014 net income of $275 million, and a third quarter 2015 net loss of $173 million.

The results come just a few weeks after Lorain steelworkers learned U.S. Steel's Lorain Tubular Operations was cutting jobs and shutting down part of its facility.

U. S. Steel President and Chief Executive Officer Mario Longhi said the company is in progress to make a profit, but in 2015 could not "fully overcome some of the worst market and business conditions we have seen."

U.S. Steel's tubular segment posted a $64 million loss for the fourth quarter of 2015 and a $50 million loss for the third quarter of 2015. The total tubular segment loss for 2015 was $179 million, compared to net sales earnings of $261 million for the tubular products in 2014, according to figures from the company.

"Fourth quarter results for our tubular segment declined as compared to the third quarter largely due to continued unfavorable market conditions and inefficiencies resulting from reduced production volumes," the company said in its market analysis of the tubular production.

"Shipments and prices continue to be adversely impacted by reduced drilling activity caused by low energy prices and high levels of inventory in the supply chain," the analysis said. "Full-year tubular segment results for 2015 decreased from 2014 primarily due to the negative impact of the high levels of tubular imports, much of which we believe are unfairly traded, and low energy prices which resulted in a decrease in shipments and average realized prices."

The adverse impacts were partially offset by benefits provided by Carnegie Way efforts, according to U.S. Steel. The Carnegie Way is the plan the company began in 2013 "to grow and drive and sustain profitable growth."

About a month into 2016, Longhi offered his outlook on U.S. Steel for the year.

"We are facing significant headwinds and uncertainty in many of the markets we serve but remain focused on continuing to improve our cost structure, developing differentiated solutions for our customers and creating more reliable and agile operating capabilities," Longhi said.

Earlier this month, Republic Steel also announced it would idle its Lorain steel mill, resulting in about 200 layoffs. The two mills sit next to each other, creating a complex that runs between East 28th Street and the Black River in South Lorain.


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