USX Posts 29% Increase in Second-Quarter Profit

USX Corp. reported a 29% increase in its second-quarter profit Tuesday, citing a strong performance by its steel operations and despite lagging prices in its oil and gas business.

The steel and energy giant said it earned $213 million in the three months ended June 30, compared to $165 million a year earlier.

Revenue for the period swelled 7.5% to $4.3 billion from $4 billion in 1987.

“Our steel segment and diversified group, however, continue to benefit from very efficient operations and good market demand and will provide the basis for strong profitability through the remainder of the year,” Chairman David M. Roderick said in a statement.

USX reported its first-half profit climbed more than fourfold to $370 million, compared to $93 million a year earlier.

Six-month revenue rose 22.7% to $8.27 billion from $6.74 billion a year earlier.

For the fourth consecutive quarter, operating income in the steel making USS division, the nation’s largest steelmaker, surpassed that of the USX energy segment, which includes Marathon Oil Co. and Texas Oil & Gas Corp.

Steel’s operating income reached $223 million on sales of $1.6 billion, while energy had operating income of $104 million on sales of $2.4 billion.

“These results indicate that we are finally hitting stride in our steel operations,” Roderick said. “Operating income totaled $70 per ton shipped in the current quarter.”

USX blamed lower crude oil prices and higher exploration expenses for a $19-million slide to $120 million in Marathon’s quarterly operating income, excluding extraordinary items.

Texas Oil & Gas reported an operating loss of $16 million on sales of $201 million. The subsidiary earned $5 million in the 1987 period.