United States Steel Corporation (US Steel) has reported a net loss of $122 million for the fourth quarter of 2013, compared to a net loss of $50 million in the same quarter of 2012. Adjusted net income for the fourth quarter of 2013 was $38 million, excluding after-tax non-cash restructuring and other charges primarily related to the shutdown of the iron and steelmaking facilities at Hamilton Works of $302 million. For the full year of 2013, US Steel has reported a net loss of $2.06 billion, compared to a net loss of $124 million in 2012.
Fourth quarter results for the company's flat rolled segment were comparable to the third quarter. Average spot and market-based contract prices were higher in the fourth quarter; however, a higher percentage of hot rolled shipments resulted in average realized prices that were comparable to the third quarter. A decrease in raw materials and other costs was offset by an increase of approximately $45 million for facility repairs and maintenance costs due primarily to a blast furnace reline at Gary Works and a planned blast furnace maintenance project at Fairfield Works.
Results for the European segment improved in the fourth quarter and returned to profitability due to higher shipments and lower facility repairs and maintenance costs as a blast furnace outage was completed in the third quarter.
Regarding the first quarter of the current year, US Steel expects the results for the flat rolled segment to increase primarily due to higher average realized prices and shipments as well as reduced repairs and maintenance costs. Average realized prices and shipments are expected to increase as a result of higher contract and spot market prices and improving end-user demand after the fourth quarter holiday down time. The company expects first quarter results for its European segment to be comparable to the fourth quarter as the benefits of increased average realized prices are offset by an increase in raw materials costs, primarily for iron ore, and other operating costs.
