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

 USX-U.S. STEEL GROUP ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
 PITTSBURGH, April 28 /PRNewswire/ -- USX Corporation (NYSE: X) Board Chairman Charles A. Corry announced a first quarter 1992 net loss for the USX-U.S. Steel Group of $13 million, or $.27 per share, on sales of $1.2 billion.
 This compares with a net loss of $308 million, or $6.06 per share, on sales of $1.1 billion in the first quarter of 1991.
 The U.S. Steel Group realized operating income of $24 million in the current quarter, compared with an operating loss of $449 million in the same quarter of 1991. Last year's first quarter loss included a restructuring charge of $322 million.
 Corry commented, "While results are much improved, recessionary demand levels and excess world steel capacity continued to push steel prices down in the first quarter. In addition, first quarter results were hurt by an electrical fire in January at the Mon Valley (Pa.) Works slab mill. Mon Valley returned to normal operating levels within several weeks."
 Excluding the restructuring charge, operating income increased by $151 million from the first quarter last year when results were unfavorably affected by the recessionary climate and lost orders and costs related to the lack of an early labor settlement. First quarter steel shipments were lower than last quarter but improved more than 10 percent from the first quarter of 1991. U.S. Steel's first quarter 1992 average realized steel product prices declined about five percent from the first quarter last year.
 Corry added, "Despite the economic climate, the U.S. Steel Group's capital improvement program is continuing. With the scheduled completion this summer of the Mon Valley continuous slab caster, U.S. Steel will achieve 100 percent cast capability. Construction of the PRO-TEC galvanizing facility (a joint venture with Kobe Steel) continues toward its expected start-up in early 1993. We are confident that our restructuring activities and modernization efforts will pay off when an economic upturn takes hold."
 Corry announced that the board of directors declared a dividend of 25 cents per share on USX-U.S. Steel Group Common Stock, payable June 10, 1992, to stockholders of record at the close of business May 8, 1992. Prior thereto, the directors also declared a dividend of $1.09375 per share on USX Corporation's adjustable rate cumulative preferred stock, payable June 30, 1992, to stockholders of record at the close of business June 1, 1992.
 USX-U.S. Steel Group's supplemental statistics and condensed financial statements, as well as USX Corporation's condensed consolidated financial statements, are attached.
 USX - U.S. STEEL GROUP
 (Dollars in Millions Except Per Share Data)
 CONDENSED STATEMENT OF INCOME (Unaudited)
 First Qtr. Ended
 March 31
 1992 1991
 SALES $ 1,169 $ 1,116
 Total operating costs (1,145) (1,565)
 ------- -------
 Operating income (loss) 24 (449)
 Other income (loss) (4) (11)
 Net interest and other financial costs (39) (33)
 ------- ------
 Total income (loss) before taxes on income (19) (493)
 Less provision (credit) for estimated
 United States and foreign income taxes (6) (185)
 ------- ------
 NET INCOME (LOSS) (13) (308)
 Dividends on preferred stock -- --
 ------- -------
 NET INCOME (LOSS) APPLICABLE TO STEEL STOCK $ (13) $ (308)
 Per common share data:
 Primary:
 Weighted average shares, in thousands 51,073 50,855
 Net income (loss) $ (.27) $ (6.06)
 Fully diluted:
 Weighted average shares, in thousands 51,073 50,855
 Net income (loss) $ (.27)(A)$ (6.06)(A)
 Dividends paid .25 .22
 CONDENSED BALANCE SHEET (Unaudited)
 Mar. 31 Dec. 31
 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 1 $ 79
 Receivables - net 467 586
 Inventories 676 623
 Other current assets 1 4
 ------ ------
 Total current assets 1,145 1,292
 Property, plant and
 equipment - net 2,802 2,797
 Other assets 1,574 1,538
 ------ ------
 Total $5,521 $5,627
 CONDENSED BALANCE SHEET (Unaudited)
 Mar. 31 Dec. 31
 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $1,080 $1,193
 Long-term debt 1,938 1,848
 Other liabilities 834 894
 ------ -------
 Total liabilities 3,852 3,935
 Preferred stock 25 25
 Common stockholders'
 equity 1,644 1,667
 ------ ------
 Total $5,521 $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, including corporate operating income comprehending pension credits and certain corporate expenses, that are not separately identified with ongoing operations of reportable industry segments 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 $322 million pretax charge for a number of restructuring actions.
 The provision for estimated U.S. and foreign income taxes for the periods reported is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income.
 USX-U.S. STEEL GROUP
 SUPPLEMENTAL STATISTICS
 ($'s in Millions)
 First Quarter
 Ended
 March 31
 1992 1991
 SALES
 Steel Segment $1,031 $ 943
 Diversified Businesses 160 187
 Intersegment Sales (22) (14)
 ------ ------
 Total U.S. Steel Group $1,169 $1,116
 OPERATING INCOME (LOSS)
 Steel Segment $ (23) $ (502)
 Diversified Businesses (8) (6)
 USX Corporate 55 59
 ------ ------
 Total U.S. Steel Group $ 24 $ (449)
 CAPITAL SPENDING
 Steel Segment $ 63 $ 148
 Diversified Businesses 6 5
 ------ ------
 Total U.S. Steel Group $ 69 $ 153
 Steel Joint Ventures $ 16 $ 14
 OPERATING STATISTICS
 Pub. & Affil. Shpmts. (A) 2,202 1,993
 Raw Steel-Production (A) 2,635 2,242
 Raw Steel-Capability Util. 82.1 pct. 55.1 pct.
 (A) 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)
 First Qtr. Ended
 March 31
 1992 1991
 SALES $ 4,106 $ 4,524
 Total operating costs (3,954) (4,759)
 ------- -------
 Operating income (loss) 152 (235)
 Other income (loss) (20) --
 Net interest and other financial costs (111) (127)
 ------- ------
 Total income (loss) before taxes on income 21 (362)
 Less provision (credit) for estimated
 United States and foreign income taxes (1) (125)
 ------- ------
 NET INCOME (LOSS) 22 (237)
 Dividends on preferred stock (2) (2)
 ------- ------
 NET INCOME (LOSS) APPLICABLE TO COMMON STOCKS$ 20 $ (239)
 Common share data - Marathon Stock
 Net income $ 33 $ 69
 Net income per share:
 - primary .12 .27
 - fully diluted .12(A) .27(A)
 Dividends paid per share .35 .31
 Common share data - Steel Stock
 Net income (loss) $ (13) $ (308)
 Net income (loss) per share:
 - primary .25 .22
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 Mar. 31 Dec. 31
 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 95 $ 279
 Receivables - net 912 1,098
 Inventories 1,936 1,858
 Other current assets 96 101
 ------- -------
 Total current assets 3,039 3,336
 Property, plant and
 equipment - net 11,558 11,593
 Other assets 2,153 2,110
 ------- -------
 Total $16,750 $17,039
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 Mar. 31 Dec. 31
 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $ 3,111 $ 3,551
 Long-term debt 5,642 5,921
 Other liabilities 2,535 2,580
 ------- -------
 Total liabilities 11,288 12,052
 Preferred stock 105 105
 Common stockholders'
 equity 5,357 4,882
 ------- -------
 Total $16,750 $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 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)
 First Quarter Ended
 March 31
 1992 1991
 Marathon Stock - primary 277,784 254,370
 - fully diluted 277,784 254,375
 Steel Stock - primary 51,073 50,855
 - fully diluted 51,073 50,855
 In the first quarter of 1992, the inventory market valuation reserve was reduced $24 million to $236 million which increased operating income and net income $24 million. 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.
 Other income in the first quarter of 1992 included a $19 million impairment of a 25 percent interest in a natural gas transmission partnership.
 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 determining the U.S. income tax provision, since the adjusted book inventory value exceeds the tax inventory value.
 In January 1992, USX sold 25 million shares of Marathon Stock to the public. Substantially all of the $541 million net proceeds will be used to fund the Marathon Group's capital projects worldwide.
 /delval/
 -0- 4/28/92
 /CONTACT: W.E. Keslar or D.H. Herring of USX Corporation, 412-433-6870/
 (X) CO: USX Corporation ST: Pennsylvania IN: MNG OIL SU: ERN


CD -- PG014 -- 3919 04/28/92 14:50 EDT
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