US Steel Reported a $222m Second Quarter Profit on Sales of $5.1bn

US Steel reversed a series of quarterly losses yesterday, reporting a $222m second quarter profit on sales of $5.1bn - a turnaround driven by higher average realized prices and more stable raw materials costs, the company said. The improved results follow a Q1 loss of $86m on sales of nearly $4.9bn and a Q2 2010 loss of $25m on revenue of almost $4.7bn. For H1, USS earned $136m on total sales of about $10bn, up from a net loss of $182m on revenue of roughly $8.6bn during H1 2010, Steel Business Briefing understands. Looking forward, USS CEO John Surma expressed concern regarding an "uneven economic recovery" in the US and Europe. "The continuing fiscal uncertainty in the US and Europe is not helping the situation, " Surma said in a statement. "Reflecting the effects of a slowing economy, we expect to report an overall lower operating profit in the third quarter; However, we expect significant improvement in our tubular operating income compared to the second quarter 2011. " The Pittsburgh-based steelmaker said Q3 flat rolled results are expected to decline compared to Q2, reflecting lower average realized prices on both its monthly index-based contracts and spot business, due to increasing capacity and imports pressuring current transaction prices. "Raw materials costs are expected to remain relatively stable, reflecting our iron ore, coke and coal positions, " the company said. "Shipments and raw steel utilization are expected to be in line with the second quarter. " Source:steelbb.com