U.S. Steel today reported a fourth quarter profit of $275 million, capping its first profitable year since 2008.
The earnings, which amounted to $1.83 per share, topped Wall Street estimates. Sales fell 5 percent to $4.07 billion but also topped estimates.
The news sent U.S. Steel shares higher in after-hours trading.
For all of 2014, the Pittsburgh steel producer reported net income of $102 million, or 69 cents per share, vs. a 2013 loss of $1.65 billion, or $11.37 per share. Sales rose less than 1 percent to $17.51 billion.
U.S. Steel said savings realized through its Carnegie Way efficiency initiative allowed it to overcome headwinds during the quarter that included falling oil prices, surging imports, and repair and maintenance costs at its Mon Valley Works near Pittsburgh and other plants.
Problems in the oil patch already have prompted U.S. Steel to lay off 756 workers at plants near Cleveland and Houston, Texas, and issue layoff warnings to 1,918 workers at tube-producing plants in Birmingham, Ala., and Lone Star, Texas.
The company said it expects depressed oil prices will continue to hurt its tubular business this year, an obstacle that could be offset by improved consumer demand for autos, appliances and other products made of steel. Benefits from the Carnegie Way project will also help, the company said.
The results were disclosed after Wall Street closed. U.S. Steel shares finished Tuesday at $21.27, down 6 cents.
First Published: January 27, 2015, 10:45 p.m.