AP NEWS
Related topics

U.S. Steel Reports $349M 3rd-Quarter Loss

October 28, 2003

PITTSBURGH (AP) _ U.S. Steel Corp. swung to a loss in the third quarter, largely fueled by a work force reduction charge as the company moves forward on a 20 percent cut of union and management jobs announced earlier this year.

The loss of $349 million, or $3.42 per share, compares to earnings of $106 million, or $1.04 a share, reported for the same quarter last year.

Revenues rose to $2.51 billion from $1.91 billion a year earlier.

The $618 million pretax charges for the quarter consisted of termination losses and expenses related to retirement, layoffs and pension-related costs stemming from the reorganization. About $97 million of the charge came from high retirement levels among salaried employees.

The steelmaker also took a $46 million charge related to a deal with International Steel Group Inc. to swap its plate mill at the Gary Works in Indiana for an ISG facility at the Indiana Harbor Works that is expected to close next quarter.

Chairman and CEO Thomas J. Usher said the company has made ``significant progress toward achieving our goal of annual repeatable cost savings in excess of $400 million″ by the end of next year.

``We continue to successfully integrate the assets acquired from National Steel; we have reduced our domestic union and nonunion work force by 4,200; and we are implementing a new administrative structure designed to significantly reduce costs while making the company more responsive and flexible in reacting to changing business conditions,″ Usher said.

U.S. Steel shares $1.19 to close at $22.03 on the New York Stock Exchange.

AP RADIO
Update hourly