Boston, MA 05/28/2014 (wallstreetpr) – United States Steel Corporation (NYSE:X) expects to put its operational challenges behind it by the end of 2Q2014. That encouraging remark came even as the company expects trouble in its operating income in 2Q.
The company reported compelling results in 1Q2014 despite the weather challenges and unfavorable pricing conditions in certain segments. The quarter drew support from the company’s cost-cutting program and higher commercial prices. As such, United States Steel Corporation (NYSE:X) reported a profit of $52 million or $0.34 per diluted share in the quarter. That compared favorably with a loss of $73 million or $0.51 per diluted share in the same period a year earlier.
Revenue in 1Q came in at $4.4 billion, against $4.6 billion a year earlier.
Transportation crisis
United States Steel Corporation (NYSE:X) warned about a weaker 2Q because of the transportation crisis that the company faced at the beginning of the quarter under the cold weather. The management cited impact on the transportation of raw materials and finished products whose effect will be felt on the 2Q operating income. However, thereafter, the company looks forward to consistent positive results for the balance of 2014 and beyond.
Support areas
United States Steel Corporation (NYSE:X) looks to enhancing production and cost-cutting as some of the efforts that it expects to boost its earnings in the long-run. Talk about cost-cutting and the company has announced plans to performance worldwide workforce reduction, and it seeks to trim is operating costs.
The company said that its promise of $290 million in benefits in 2014 is linked to the headcount reduction within its ranks. The layoffs will be performed in the business support functions and operations.
Reliable track record
There are several reasons to believe United States Steel Corporation (NYSE:X) when it says the future looks bright. Even in the most challenging business environment, the company has often tried hard to create value for the shareholders. The positive 1Q is a case in point that despite the harsh weather condition the company managed to register encouraging results.
