NEW YORK, N.Y. - United States Steel Corp. said Tuesday its second-quarter net income fell by more than half as slower global economic growth hurt demand in a number of its core markets.
But the results were better than Wall Street was expecting. Shares of U.S. Steel, which had lost more than 30 per cent between April and June, jumped 4 per cent in premarket trading.
The Pittsburgh manufacturer earned $101 million, or 62 cents per share, compared with $222 million, or $1.33 a share, a year ago.
Revenue fell 2 per cent to $5.02 billion.
Analysts predicted net income of 48 cents per share on revenue of $5 billion, according to FactSet.
U.S. Steel Corp., which makes steel for a number of end uses from cars to building construction, owns one of Canada's largest steel manufacturers — the Hamilton-based company formerly known as Stelco
It said higher prices and lower costs for raw materials and energy boosted results even as economic conditions remained challenging, particularly in Europe.
For the third-quarter, US Steel says results across its segments will be lower than in the second quarter but each will manage an operating profit. The second quarter is typically the strongest for steel companies.
Investors applauded the results and outlook after a slew of bad news from the steel industry. Nucor Corp., AK Steel Holding Corp. and ArcelorMittal all reported weaker earnings from April through June, blaming anemic demand.
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