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

 USX - U.S. STEEL GROUP ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
 PITTSBURGH, Oct. 27 /PRNewswire/ -- USX Corporation (NYSE: X) Board Chairman Charles A. Corry announced a third quarter 1992 net loss for the USX - U.S. Steel Group of $7 million, or $.13 per share, compared with net income of $5 million, or $.09 per share, in the third quarter of 1991. Third quarter 1992 sales were $1.3 billion, unchanged from the third quarter of 1991.
 The U.S. Steel Group recorded operating income of $12 million in the current quarter, compared with $30 million in the same quarter last year.
 Corry noted that, "The last major step in attaining our goal of 100 percent continuous cast capability was achieved in mid-August with the start-up of the new slab caster at Mon Valley Works near Pittsburgh. The start-up was on schedule and production is ahead of the planned break-in curve. Third quarter results for the U.S. Steel Group were negatively affected by caster start-up costs and tubular markets which remained weak. Prices remained stable in the third quarter but at levels below the prior year quarter."
 With respect to the near-term outlook for the U.S. Steel Group, Corry noted, "We expect shipments to remain flat in the fourth quarter given the sluggish U.S. economy, but we anticipate improvement in the domestic steel market by early next year as trade abuses are corrected."
 USX plans to adopt two new accounting standards in the fourth quarter which will result in the first three quarters of 1992 being restated. Statement of Financial Accounting Standard (SFAS) 106 "Employers' Accounting for Postretirement Benefits Other than Pensions" requires accrual of future retiree medical and life insurance benefits. The immediate recognition of the transition obligation measured as of Jan. 1, 1992, will be reported as a change in accounting principle and will decrease the U.S. Steel Group's previously reported first quarter 1992 net income by approximately $1.1 billion, net of tax. The U.S. Steel Group's ongoing pretax operating costs will also increase under this standard. For 1992, the annual increase is estimated at $60 million which will also be reflected in the restated quarterly results.
 The second accounting standard, SFAS 109 "Accounting for Income Taxes" requires a liability approach for measuring deferred income taxes. The estimated cumulative effect of adopting this standard as of Jan. 1, 1992 is in the range of $150 to $250 million, which will also be reported as a change in accounting principle and will decrease previously reported first quarter 1992 net income. In addition, the estimated incremental 1992 income tax expense associated with adoption of the new standard is approximately $20 million, which will be reflected in the restated quarterly results.
 The Group's cash flows will not be affected by the adoption of these two accounting standards. The amounts disclosed are preliminary estimates and are subject to revision based on continuing evaluation of certain provisions of the standards and potential fourth quarter transactions.
 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 Dec. 10, 1992, to stockholders of record at the close of business Nov. 6, 1992. Prior thereto, the directors also declared a dividend of $.9875 per share on USX Corporation's adjustable rate cumulative preferred stock, payable Dec. 31, 1992, to stockholders of record at the close of business Dec. 1, 1992.
 USX - U.S. Steel Group's supplemental statistics and condensed financial statements, as well as USX Corporation's condensed consolidated financial statements, follow.
 USX - U. S. STEEL GROUP
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Third Qtr. Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 1,271 $ 1,281
 Total operating costs (1,259) (1,251)
 Operating income (loss) 12 30
 Other income - 14
 Net interest and other financial costs (39) (37)
 Total income (loss) before taxes on income (27) 7
 Less provision (credit) for estimated
 United States and foreign income taxes (20) 2
 NET INCOME (LOSS) (7) 5
 Dividends on preferred stock (1) (1)
 NET INCOME (LOSS) APPLICABLE TO STEEL
 STOCK $ (8) $ 4
 Per common share data:
 Primary:
 Weighted average shares, in thousands. 59,388 51,064
 Net income (loss) $ (.13) $ .09
 Fully diluted:
 Weighted average shares, in thousands. 59,388 51,078
 Net income (loss) $ (.13)(A)$ .09(A)
 Dividends paid .25 .25
 USX - U. S. STEEL GROUP
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Nine Months Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 3,705 $ 3,558
 Total operating costs (3,624) (4,009)
 Operating income (loss) 81 (451)
 Other income 2 6
 Net interest and other financial costs (118) (106)
 Total income (loss) before taxes on income (35) (551)
 Less provision (credit) for estimated
 United States and foreign income taxes (21) (209)
 NET INCOME (LOSS) (14) (342)
 Dividends on preferred stock (2) (2)
 NET INCOME (LOSS) APPLICABLE TO STEEL
 STOCK $ (16) $ (344)
 Per common share data:
 Primary:
 Weighted average shares, in thousands 54,492 50,935
 Net income (loss) $ (.29) $ (6.75)
 Fully diluted:
 Weighted average shares, in thousands 54,492 50,935
 Net income (loss) $ (.29)(A) $ (6.75)(A)
 Dividends paid .75 .69
 CONDENSED BALANCE SHEET (Unaudited)
 September 30 December 31
 (In Millions) 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 265 $ 79
 Receivables - net 481 586
 Inventories 721 623
 Other current assets 1 4
 Total current assets 1,468 1,292
 Property, plant and
 equipment - net 2,842 2,797
 Other assets ? 1,674 1,538
 Total $5,984 $5,627
 CONDENSED BALANCE SHEET (Unaudited)
 September 30 December 31
 (In Millions) 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $1,356 $1,193
 Long-term debt 1,959 1,848
 Other liabilities 825 894
 Total liabilities 4,140 3,935
 Preferred stock 25 25
 Common stockholders'
 equity 1,819 1,667
 Total $5,984 $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 USX - U.S. Steel Group Common 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)
 Third Quarter Nine Months
 Ended Ended
 September 30 September 30
 1992 1991 1992 1991
 SALES
 Steel Segment $1,079 $1,120 $3,204 $3,067
 Diversified Businesses 217 173 565 532
 Intersegment Sales (25) (12) (64) (41)
 Total U. S. Steel Group $1,271 $1,281 $3,705 $3,558
 OPERATING INCOME (LOSS)
 Steel Segment $ (33) $ (11) $ (76) $ (599)
 Diversified Businesses (12) (14) (11) (19)
 Corporate (A) 57 55 168 167
 Total U. S. Steel Group $ 12 $ 30 $ 81 $ (451)
 CAPITAL SPENDING
 Steel Segment $ 67 $ 69 $ 219 $ 328
 Diversified Businesses 8 10 23 20
 Total U. S. Steel Group $ 75 $ 79 $ 242 $ 348
 Steel Joint Ventures $ 7 $ 29 $ 41 $ 68
 OPERATING STATISTICS
 Pub. & Affil. Shpmts.(B) 2,116 2,284 6,571 6,389
 Raw Steel-Production(B) 2,620 2,997 7,940 7,684
 Raw Steel-Capability Util. 87.5 pct. 88.3 pct. 86.6 pct. 66.4 pct.
 (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 STATEMENT OF INCOME (Unaudited)
 Third Qtr. Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 4,650 $ 4,767
 Total operating costs (4,538) (4,626)
 Operating income 112 141
 Other income (loss) 4 24
 Net interest and other financial costs (99) (98)
 Total income (loss) before taxes on income 17 67
 Less provision (credit) for estimated
 income taxes - United States (11) 30
 - Foreign 18 9
 NET INCOME (LOSS) 10 28
 Dividends on preferred stock (3) (2)
 NET INCOME (LOSS) APPLICABLE TO COMMON
 STOCKS $ 7 $ 26
 Common share data - Marathon Stock
 Net income $ 15 $ 22
 Primary net income per share .05 .08
 Fully diluted net income per share .05(A) .08(A)
 Dividends paid per share .35 .35
 Common share data - Steel Stock
 Net income (loss) $ (8) $ 4
 Primary net income (loss) per share (.13) .09
 Fully diluted net income (loss) per share (.13)(A) .09(A)
 Dividends paid per share .25 .25
 USX CORPORATION AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Nine Months Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 13,238 $ 13,952
 Total operating costs (12,738) (13,897)
 Operating income 500 55
 Other income (loss) (1) 38
 Net interest and other financial costs (141) (344)
 Total income (loss) before taxes on income 358 (251)
 Less provision (credit) for estimated
 income taxes - United States 66 (77)
 - Foreign 28 10
 NET INCOME (LOSS) 264 (184)
 Dividends on preferred stock (7) (7)
 NET INCOME (LOSS) APPLICABLE TO COMMON
 STOCKS $ 257 $ (191)
 Common share data - Marathon Stock
 Net income $ 273 $ 153
 Primary net income per share .97 .60
 Fully diluted net income per share .97 .60(A)
 Dividends paid per share 1.05 .96
 Common share data - Steel Stock
 Net income (loss) $ (16) $ (344)
 Primary net income (loss) per share (.29) (6.75)
 Fully diluted net income (loss) per share (.29)(A) (6.75)(A)
 Dividends paid per share .75 .69
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 September 30 December 31
 (In Millions) 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 856 $ 279
 Receivables - net 1,066 1,098
 Inventories 2,152 1,858
 Other current assets 118 101
 Total current assets 4,192 3,336
 Property, plant and
 equipment - net 11,628 11,593
 Other assets 2,280 2,110
 Total $18,100 $17,039
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 September 30 December 31
 (In Millions) 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $ 4,125 $ 3,551
 Long-term debt 5,788 5,921
 Other liabilities 2,479 2,580
 Total liabilities 12,392 12,052
 Preferred stock 105 105
 Common stockholders'
 equity 5,603 4,882
 Total $18,100 $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 (NYSE: MRO) 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)
 Third Quarter Ended
 September 30
 1992 1991
 Marathon Stock - primary 285,184 256,417
 - fully diluted 285,184 256,422
 Steel Stock - primary 59,388 51,064
 - fully diluted 59,388 51,078
 (In Thousands)
 Nine Months Ended
 September 30
 1992 1991
 Marathon Stock - primary 282,559 255,238
 - fully diluted 288,805 255,249
 Steel Stock - primary 54,492 50,935
 - fully diluted 54,492 50,935
 In the first nine months of 1992, the inventory market valuation reserve was reduced by $160 million to $100 million, which increased operating income and net income by $160 million ($38 million in the third quarter of 1992).
 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 first nine 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 in the second quarter of 1992. Net interest and other financial costs in the third quarter of 1991 included $26 million of interest income related to prior years' production taxes. 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.
 Following approval by the common stockholders, the USX Certificate of Incorporation was amended on September 30, 1992, to provide for the issuance of a new class of common stock, USX - Delhi Group (NYSE: DGP) Common Stock (Delhi Stock), which is intended to reflect the performance of the Delhi Group. The Delhi Group consists of the Delhi Gas Pipeline Corporation and certain related companies which are engaged in the purchasing, gathering, processing, transporting and marketing of natural gas. On October 2, 1992, USX sold 9,000,000 shares of Delhi Stock. Net proceeds of $136 million from the sale will be recognized in the fourth quarter of 1992.
 USX plans to adopt two new accounting standards in the fourth quarter which will result in the first three quarters of 1992 being restated. Statement of Financial Accounting Standard No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions," requires accrual of future retiree medical and life insurance benefits. The immediate recognition of the transition obligation measured as of January 1, 1992, will be reported as a change in accounting principle and will decrease USX's previously reported first quarter 1992 net income by approximately $1.2 billion, net of tax. USX's ongoing pretax operating costs will also increase under this standard. For 1992, this annual increase is estimated at $70 million which will also be reflected in the restated quarterly results.
 The second accounting standard, Statement of Financial Accounting Standard No. 109, "Accounting for Income Taxes," requires a liability approach for measuring deferred income taxes. The estimated cumulative effect of adopting this standard as of January 1, 1992, is in the range of $300 million to $500 million, which will also be reported as a change in accounting principle and will decrease previously reported first quarter 1992 net income. In addition, the estimated incremental 1992 income tax expense associated with adoption of the new standard is approximately $60 million, which will also be reflected in the restated quarterly results.
 Cash flows will not be affected by the adoption of these two accounting standards. The amounts disclosed are subject to revision based on continuing evaluation of certain provisions of the standards and fourth quarter transactions.
 /delval/
 -0- 10/27/92
 /CONTACT: W.E. Keslar or D.H. Herring, 412-433-6870, both of USX Corporation/
 (X MRO DGP) CO: USX Corporation; USX - U.S. Steel Group ST: Pennsylvania IN: MNG OIL SU: ERN


CD -- PG003 -- 5413 10/27/92 12:44 EST
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Date:Oct 27, 1992
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