United States Steel Corporation (NYSE:X) reported its earnings before opening bell, posting first-quarter losses that were even below the low expectations of analysts. The company’s net loss was $73 million or 51 cents per share, compared to losses of $219 million or $1.52 per share in the same quarter a year ago.
Losses excluding a charge for paying down some of its debt were 35 cents per share. Analysts were expecting the company to report a loss of 22 cents per share on $4.6 billion in revenue. Sales dropped to $4.6 billion, compared to $5.17 billion in the same quarter a year ago.
Shares of U.S. Steel dropped as much as 4.5 percent in pre-market trading on the exceptionally weak earnings report. The stock rose 1 percent on Monday, but it has fallen 26 percent already this year. That makes it the fifth-worst performer on the S & P 500 Index.
Demand for steel has made it difficult for United States Steel Corporation (NYSE:X) to be profitable. There’s currently a glut of steel supply around the globe. The Metals Service Center Institute reports that total domestic shipments in January and February dropped to 7.01 million tons, a decline of 4.9 percent compared to the same quarter a year ago. Meanwhile the World Steel Association reports that steel output around the globe has risen 2.9 percent to 289 million.
According to Bloomberg, United States Steel Corporation (NYSE:X) is one of four bidders who are attempting to acquire an Alabama steel mill which is being sold by German steel maker ThyssenKrupp AG. The mill could go for as much as $1.5 billion to $2 billion, according to Bloomberg’s sources.