Steel producer United States Steel Corporation (X) on Tuesday posted its fourth consecutive quarterly loss, and warned that the first quarter would bring more of the same, sending its shares lower in morning trading.
The Pittsburgh-based company reported a fourth quarter net loss of $267 million, or $1.86 per share, compared with net income of $290 million, or $2.50 per share, in the year-ago period.
Revenue plunged 24% from last year, to $3.4 billion.
On average, Wall Street analysts expected a much smaller loss of $1.43 per share, albeit on significantly lower revenue of $3.09 billion.
The company's first quarter forecast was less than optimistic.
CEO John Surma said in a statement that "We expect to report an overall first-quarter 2010 operating loss in line with the fourth-quarter 2009 as gradually improving business conditions are not yet fully reflected in our operating results."
U.S. Steel shares fell $4.57, or 8%, in morning trading Tuesday.
The Bottom Line
Shares of U.S. Steel (X) have a dividend yield of .36%, based on last night’s closing stock price of $56.23. The stock has technical support in the $50 price area. If the shares can firm up, there could be overhead resistance around the $62 price level. But many experts would remain on the sidelines for now.
United States Steel Corporation (X) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
