Red ink piles up for U.S. Steel

U.S. Steel Corp. posted a loss for the fourth quarter — its second quarterly loss in a row — but said it expects results to improve in the second quarter this year.

The Pittsburgh-based steelmaker lost $680 million, or $4 per share, in the final quarter of 2019 vs. profits of $592 million, or $3.34, a year earlier.

Excluding restructuring and other special items, the company lost $109 million, or 64 cents per share — better than analysts’ consensus estimate of a loss of $1.11 per share. U.S. Steel had lowered its fourth-quarter earnings guidance in December to a loss of $1.15.

“We are pleased to deliver better than expected results to end the year and are excited to turn the page to 2020 where we will continue to transition the business toward our future,” CEO David B. Burritt said in a statement Thursday.

The first quarter of 2020 will be “the trough for the year,” the company said, due to seasonality of mining operations and lower first-quarter shipments of some products.

Results were released after the close of the stock market. Shares rallied about 6% in after-hours trading. Shares have sunk some 58% over the past 12 months.

U.S. Steel has said it is remaking itself for the future — investing in a minimill in Arkansas, pledging to make $1 billion in upgrades to its Mon Valley Works and cutting costs.

For the full year, the company posted a loss of $642 million, or $3.75 a share, down from profits of $1.1 billion, or $6.25, in 2018 when steel prices were on the rise.

Sales for the fourth quarter slumped 23% to $2.8 billion from $3.7 billion in the same quarter a year earlier.

Sales for all of 2019 skidded 9% to $12.9 billion from $14.2 billion in 2018.

Top executives are set to discuss the results in a conference call with analysts Friday morning.