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USX - U. S. STEEL GROUP ANNOUNCES SECOND QUARTER FINANCIAL RESULTS

USX - U. S. STEEL GROUP ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
 PITTSBURGH, July 28 /PRNewswire/ -- USX Corporation Board Chairman Charles A. Corry announced second quarter 1992 net income for the USX - U. S. Steel Group (NYSE: X) of $6 million, or $.10 per share, compared with a net loss of $39 million, or $.79 per share, in the second quarter of 1991. Second quarter 1992 sales were $1.3 billion compared with $1.2 billion in the second quarter of 1991.
 The U. S. Steel Group recorded operating income of $45 million in the current quarter, compared with an operating loss of $32 million in the same quarter last year.
 Corry commented, "I am pleased to report that the U. S. Steel Group returned to profitability despite continuing depressed prices and weak tubular markets. Operationtinued to be severely depressed, substantially due to subsidized and dumped steel imports."
 While second quarter steel shipments were up 7 percent from second quarter 1991, they showed only modest improvement from first quarter 1992. Continuous casters accounted for 77.4 percent of raw steel production in the second quarter of 1992.
 Regarding the U. S. Steel Group's near-term outlook, Corry noted that, "We expect shipments to remain basically flat in the third quarter, which historically has been the lowest shipping quarter of the year, and are hopeful that prices will improve as the economy recovers and trade abuses are corrected. A highlight of the third quarter will be the start-up of the Mon Valley (Pa.) Works continuous caster which will complete our goal of being able to produce 100 percent of our product through continuous casting. Third quarter results will, however, be negatively affected by caster start-up costs and by continuing weak tubular markets."
 USX Corporation sold 8.05 million shares of USX - U. S. Steel Group Common Stock to the public during the second quarter of 1992 for net proceeds of $198 million.
 Corry announced that the board of directors had declared a dividend of 25 cents per share on USX - U. S. Steel Group common stock, payable Sept. 10, 1992, to stockholders of record at the close of business Aug. 7, 1992. Prior thereto, the directors also declared a dividend of $1.06875 per share on USX Corporation's adjustable rate cumulative preferred stock, payable Sept. 30, 1992, to stockholders of record at the close of business Aug. 31, 1992.
 USX - U. S. Steel Group's supplemental statistics and condensed financial statements, as well as USX Corporation's condensed consolidated financial statements, follows.
 USX - U. S. STEEL GROUP
 (Dollars in Millions Except Per Share Data)
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Second Qtr. Ended
 June 30
 1992 1991
 SALES $ 1,265 $ 1,161
 Total operating costs (1,220) (1,193)
 Operating income (loss) 45 (32)
 Other income (loss) 6 3
 Net interest and other financial costs (40) (36)
 Total income (loss) before taxes on income 11 (65)
 Less provision (credit) for estimated
 United States and foreign income taxes 5 (26)
 NET INCOME (LOSS) 6 (39)
 Dividends on preferred stock (1) (1)
 NET INCOME (LOSS) APPLICABLE TO STEEL
 STOCK $ 5 $ (40)
 Per common share data:
 Primary:
 Weighted average shares, in thousands 53,022 50,959
 Net income (loss) $ .10 $ (.79)
 Fully diluted:
 Weighted average shares, in thousands 53,056 50,959
 Net income (loss) $ .10(A) $ (.79)(A)
 Dividends paid .25 .22
 USX - U. S. STEEL GROUP
 (Dollars in Millions Except Per Share Data)
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Six Months Ended
 June 30
 1992 1991
 SALES $ 2,434 $ 2,277
 Total operating costs (2,365) (2,758)
 Operating income (loss) 69 (481)
 Other income (loss) 2 (8)
 Net interest and other financial costs (79) (69)
 Total income (loss) before taxes on income (8) (558)
 Less provision (credit) for estimated
 United States and foreign income taxes (1) (211)
 NET INCOME (LOSS) (7) (347)
 Dividends on preferred stock (1) (1)
 NET INCOME (LOSS) APPLICABLE TO STEEL
 STOCK $ (8) $ (348)
 Per common share data:
 Primary:
 Weighted average shares, in thousands. 52,017 50,907
 Net income (loss) $ (.16) $ (6.84)
 Fully diluted:
 Weighted average shares, in thousands 52,017 50,907
 Net income (loss) $ (.16)(A) $ ( 6.84)(A)
 Dividends paid .50 .44
 CONDENSED BALANCE SHEET (Unaudited)
 June 30 December 31
 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 37 $ 79
 Receivables - net 419 586
 Inventories 684 623
 Other current assets 1 4
 Total current assets 1,141 1,292
 Property, plant and
 equipment - net 2,830 2,797
 Other assets 1,610 1,538
 Total $5,581 $5,627
 CONDENSED BALANCE SHEET (Unaudited)
 June 30 December 31
 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $1,085 $1,193
 Long-term debt 1,825 1,848
 Other liabilities 808 894
 Total liabilities 3,718 3,935
 Preferred stock 25 25
 Common stockholders'
 equity 1,838 1,667
 Total $5,581 $5,627
 (A) Conversion of convertible debentures excluded from fully diluted computation because of antidilutive effects.
 The following notes are an integral part of these financial statements.
 USX - U. S. STEEL GROUP
 SELECTED NOTES TO CONDENSED FINANCIAL STATEMENTS
 The condensed financial statements of the U. S. Steel Group include the results of operations and financial position for the Steel and Diversified Businesses segments and a portion of the corporate assets, liabilities and related transactions that are not separately identified with ongoing operating units of USX. These condensed financial statements should be read in connection with the condensed consolidated financial statements of USX.
 In the first quarter of 1991, operating income included a $322 million pretax charge for a number of restructuring actions.
 The provision for estimated U.S. and foreign income taxes for the periods reported is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income.
 In June 1992, USX sold 8.05 million shares of steel stock to the public for net proceeds of $198 million which have been reflected in their entirety in the financial statements of the U. S. Steel Group.
 USX - U. S. STEEL GROUP
 SUPPLEMENTAL STATISTICS
 ($'s in Millions)
 Second Quarter Six Months
 Ended Ended
 June 30 June 30
 1992 1991 1992 1991
 SALES
 Steel Segment $1,094 $1,004 $2,125 $1,947
 Diversified Businesses 188 172 348 359
 Intersegment Sales (17) (15) (39) (29)
 Total U. S. Steel Group $1,265 $1,161 $2,434 $2,277
 OPERATING INCOME (LOSS)
 Steel Segment $ (20) $ (86) $ (43) $ (588)
 Diversified Businesses 9 1 1 (5)
 Corporate (A) 56 53 111 112
 Total U. S. Steel Group $ 45 $ (32) $ 69 $ (481)
 CAPITAL SPENDING
 Steel Segment $ 89 $ 111 $ 152 $ 259
 Diversified Businesses 9 5 15 10
 Total U. S. Steel Group $ 98 $ 116 $ 167 $ 269
 Steel Joint Ventures $ 18 $ 25 $ 34 $ 39
 OPERATING STATISTICS
 Pub. & Affil. Shpmts. (B) 2,253 2,112 4,455 4,105
 Raw Steel-Production (B) 2,690 2,445 5,325 4,687
 Raw Steel-Capability
 Util. (Pct.) 90.8 59.4 86.3 57.3
 (A) Corporate operating income includes pension credits and certain corporate expenses that are not directly attributable to the ongoing operations of the U. S. Steel Group as well as the portion of the USX corporate general and administrative costs allocated to the U. S. Steel Group.
 (B) 000 N.T.
 USX CORPORATION AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (Dollars in Millions Except Per Share Data)
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Second Qtr. Ended
 June 30
 1992 1991
 SALES $ 4,482 $ 4,661
 Total operating costs (4,246) (4,512)
 Operating income (loss) 236 149
 Other income (loss) 15 14
 Net interest and other financial income
 (costs) 69 (119)
 Total income (loss) before taxes on income 320 44
 Less provision (credit) for estimated
 income taxes - United States 78 18
 - Foreign 10 1
 NET INCOME (LOSS) 232 25
 Dividends on preferred stock (2) (3)
 NET INCOME (LOSS) APPLICABLE TO COMMON
 STOCKS $ 230 $ 22
 Common share data - Marathon Stock
 Net income $ 225 $ 62
 Net income per share:
 - primary .79 .25
 - fully diluted .77 .25(A)
 Dividends paid per share .35 .31
 Common share data - Steel Stock
 Net income (loss) $ 5 $ (40)
 Net income (loss) per share:
 - primary .10 (.79)
 - fully diluted .10(A) (.79)(A)
 Dividends paid per share .25 .22
 USX CORPORATION AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (Dollars in Millions Except Per Share Data)
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Six Months Ended
 June 30
 1992 1991
 SALES $ 8,588 $ 9,185
 Total operating costs (8,200) (9,271 14
 Net interest and other financial income (costs) (42) (246)
 Total income (loss) before taxes on income 341 (318)
 Less provision (credit) for estimated
 income taxes - United States 77 (107)
 - Foreign 10 1
 NET INCOME (LOSS) 254 (212)
 Dividends on preferred stock (4) (5)
 NET INCOME (LOSS) APPLICABLE TO COMMON STOCKS $ 250 $ (217)
 Common share data - Marathon Stock
 Net income $ 258 $ 131
 Net income per share:
 - primary .92 .52
 - fully diluted .91 .52(A)
 Dividends paid per share .70 .61
 Common share data - Steel Stock
 Net income (loss) $ (8) $ (348)
 Net income (loss) per share:
 - primary (.16) (6.84)
 - fully diluted (.16)(A)(6.84)(A)
 Dividends paid per share .50 .44
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 June 30 December 31
 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 137 $ 279
 Receivables - ne $17,049 $17,039
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 June 30 December 31
 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $ 3,280 $ 3,551
 Long-term debt 5,450 5,921
 Other liabilities 2,523 2,580
 Total liabilities 11,253 12,052
 Preferred stock 105 105
 Common stockholders'
 equity 5,691 4,882
 Total $17,049 $17,039
 (A) Conversion of convertible debentures excluded from fully diluted computation because of antidilutive effects.
 The following notes are an integral part of these financial statements.
 USX CORPORATION AND SUBSIDIARY COMPANIES
 SELECTED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 The financial information for the Marathon Group and the U. S. Steel Group, taken together, includes all accounts which comprise the corresponding consolidated financial information for USX.
 The numbers of shares used in the computation of earnings per share were as follows:
 (In Thousands)
 Second Quarter Ended
 June 30
 1992 1991
 Marathon Stock - primary 284,684 255,270
 - fully diluted 301,882 255,273
 Steel Stock - primary 53,022 50,959
 - fully diluted 53,056 50,959
 (In Thousands)
 Six Months Ended
 June 30
 1992 1991
 Marathon Stock - primary 281,234 254,820
 - fully diluted 298,432 254,824
 Steel Stock - primary 52,017 50,907
 - fully diluted 52,017 50,907
 In the first six months of 1992, the inventory market valuation reserve was reduced by $122 million to $138 million, which increased operating income and net income by $122 million (second quarter 1992 results were improved by $98 million).
 The board of directors approved restructuring actions involving the disposition of nonstrategic domestic exploration and production properties, which resulted in a $115 million pretax charge to operating income in the second quarter of 1992. In the first quarter of 1991, operating income included a $346 million pretax charge for a number of restructuring actions primarily related to steel operations.
 Pretax income in the second quarter and first six months of 1992 included the settlement of a production tax refund claim for the years 1982 through 1985. The refund resulted in a credit to operating income of $119 million as well as interest income of $177 million. Other income also included a $19 million impairment of a 25 percent interest in a natural gas transmission partnership recognized in the first quarter of 1992.
 The provision for estimated U.S. and foreign income taxes for the periods reported is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income. The inventory market valuation credit is excluded from the determination of the U.S. income tax provision since the adjusted book inventory value exceeds the tax inventory value.
 USX sold 25 million shares of Marathon stock to the public for net proceeds of $541 million and 8.05 million shares of Steel stock to the public for net proceeds of $198 million in the first and second quarters of 1992, respectively.
 /delval/
 -0- 7/28/92
 /CONTACT: W.E. Keslar or D.H. Herring of USX, 412-433-6870/
 (X MRO) CO: USX Corporation; USX - U. S. Steel Group ST: Pennsylvania IN: MNG SU: ERN


PT -- PG002 -- 3966 07/28/92 10:25 EDT
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