Big Steelmakers Report Gains in Sales and Earnings

USX Corp. on Tuesday reported a first-quarter profit after suffering a loss a year ago due to a lengthy strike, while Bethlehem Steel Corp. said its earnings more than tripled and Wheeling-Pittsburgh Steel Corp. posted a profit after a loss a year earlier.

Pittsburgh-based USX posted first-quarter net income of $157 million on revenue of $4 billion. That compared to a loss of $72 million and $2.8 billion in revenue in 1987.

Financial results in the first quarter of 1987 were negatively affected by the 184-day steel strike settled Jan. 31, 1987, and the subsequent start-up costs, USX said.

Wheeling, which is reorganizing under federal bankruptcy protection, posted a profit of $46.6 million, contrasted with a loss of $115.7 million in its first quarter of 1987. Revenue rose to $263 million from $255 million in the year-earlier period.

The 1987 net loss stemmed largely from a change in the company’s accounting methods, Wheeling-Pittsburgh said.

Bethlehem Steel said it netted $85.4 million, compared to earnings of $25.6 million a year ago. Revenue jumped to $1.33 billion from $1.13 billion.

The Bethlehem, Pa.-based company said steel shipments during the first quarter totaled 2.7 million tons, up from 2.3 million tons last year and the highest since the third quarter of 1981. The company also noted that steel prices were up in the first quarter.

Bethlehem Steel said its basic steel operations had a profit of $98.1 million for the period, compared to $49.2 million a year ago. It reported profits at its mills at Sparrows Point and Burns Harbor, Md., and at Bethlehem.

USX said its steel unit, the nation’s largest steelmaker, earned $167 million on revenue of $1.4 billion, contrasted with an operating loss of $180 million on revenue of $190 million in the same quarter of 1987.

“The impressive results in steel are due to reduced costs, strong demand and modestly higher prices,” said USX Chairman David M. Roderick. “We’re finally putting to rest the image of a rust-belt industry and replacing it with an image of a highly productive, lean and profitable worldwide competitor.”

Roderick said the company expects further profit improvement in the second quarter and a continued strong financial performance for the remainder of the year.

“We see no letup in demand nor softening of prices for steel products,” he said. “We are, likewise, optimistic that results in our energy segment will improve as crude oil prices stabilize and refining and marketing margins improve.”

The company said its energy segment netted $91 million on revenue of $2.4 billion in the first quarter. This contrasts with with operating income of $121 million on revenue of $2.3 billion in the first quarter of 1987.

Marathon Oil reported first-quarter earnings of $84 million on revenue of $2.1 billion, contrasted with $115 million on revenue of $2.1 billion a year ago. Texas Oil & Gas Corp. reported income of $7 million on revenue of $276 million in the first quarter, compared to $6 million on revenue of $249 million in the year-ago period, the company said.

The diversified businesses segment reported income of $97 million on revenue of $322 million in the first quarter, compared to $8 million on revenue of $324 million a year ago. The current quarter’s results included a favorable $43-million partial adjustment of the restructuring provision taken in 1986, USX said.

Wheeling said an 8% increase in product prices resulted in a 3% increase in net sales for the 1988 quarter, up to $262.9 million on shipments of 548,094 tons of steel products.

The company reported that operating costs and raw steel production both dropped 1%.