U.S. Steel’s Net Falls 5% in Quarter
U.S. Steel Corp. on Tuesday reported a second-quarter profit of $133 million, down about 5% from the $140 million that it reported a year earlier.
The 1984 figures included $27 million in extraordinary gains from the early repurchase of debt, the company said.
Revenue for the quarter ended June 30 totaled $5.1 billion, up from 1984’s $4.9 billion.
U.S. Steel’s board of directors also declared a 30-cents-per-share dividend on common stock, payable Sept. 10 to stockholders of record Aug. 9. The company has declared dividends of 25 cents per share since the fourth quarter of 1982.
“Second-quarter results clearly demonstrate the effectiveness of our ongoing efforts to operate our businesses more efficiently, especially in light of the lower prices in many of the markets we serve and fewer benefits from extraordinary gains and asset sales compared with the second quarter of last year,” Chairman David M. Roderick said.
Steel and related products in the second quarter contributed $85 million in operating income on revenue of $1.8 billion, compared to operating income of $84 million on similar revenue in the second quarter of 1984, the Pittsburgh-based company said.
It said that second-quarter steel shipments of 3.3 million tons were slightly lower than the second quarter of 1984 and that average steel prices for the second quarter were 3% lower than the second quarter of 1984.
U.S. Steel said its second-quarter oil and gas operating income, before foreign income taxes, was $322 million on revenue of $2.7 billion. In the second quarter of 1984, oil and gas operating income was $347 million on revenue of $2.4 billion, the company said.
U.S. Steel said its other businesses, including agricultural chemicals, contributed $27 million in operating income in the second quarter, down from $41 million a year earlier.
Copier Sales, Insurance Unit Boost Xerox Results
Xerox reported sharply higher second-quarter earnings from continuing operations and net income. The company attributed the increased earnings from continuing operations to an increase in sales of copiers and a turnaround at its Crum & Forster insurance subsidiary.
Xerox reported net income for the three months ended June 30 of $221 million, including $103 million from discontinued operations. Of that $103 million, $95 million was derived from the sale of three of its publishing subsidiaries.
A year earlier, Xerox reported net income of $96 million, which included $8 million from discontinued operations.
Revenue for the quarter was $2.14 billion, up 3% from $2.1 billion in the like three months of 1984.
Xerox Chairman and Chief Executive David T. Kearns said he was “generally pleased” with the results, which he said showed that the company is “on track” for the “solid 1985" that he first predicted in January.
The company’s Crum & Forster insurance unit reported a second-quarter profit of $4 million. A year earlier, the unit posted a $15-million loss.
Kearns said the turnaround was achieved through increases in prices, tighter underwriting standards, a reduction in less productive agents and the closing of several offices.
For detailed data and results of other companies, please see tables, Page 13.