U.S. Steel +7% as adjusted Q2 earnings surprise amid cost cuts

|By:, SA News Editor

U.S. Steel (NYSE:X) +7% AH as adjusted Q2 earnings jumped to $0.17/share, but results show a continuing struggle with a glut in global markets.

Net sales edged lower to $4.4B as total steel shipments fell 4% Y/Y, but the result was ahead of analyst consensus; also, total operating expenses dropped nearly 2% to $4.37B.

Expects its flat-rolled segment to generate a "favorable impact" of ~$150M in the absence of weather-related and operational challenges experienced during Q2 via reduced repairs and maintenance costs, increased operating efficiencies and higher shipments.

Q2 shipments of flat-rolled products fell 5%; at the European business, shipments slipped 0.85% and tubular products fell nearly 2%.

Average realized prices declined for the European and tubular segments, but rose again for flat-rolled products.