United StatesSteel Corp. (X) recently announced the opening of a new compressed natural gas filling station for plant vehicles at the U.S. Steel Mon Valley Works, Irvin Plant on September 7, 2011.
Mon Valley Works is an integrated steelmaking operation, which operates four separate facilities including Clairton Plant, Edgar Thomson Plant, Irvin Plant and Fairless Plant.
Mon Valley is also one of the few compressed natural gas filling stations that are popping up in the Pittsburgh region; with the most recent being Giant Eagle
Clairton Plant is located approximately 20 miles south of Pittsburgh in Clairton, Pa., and sits along the west bank of the Monongahela River. The largest coke manufacturing facility in the United States, Clairton Plant operates 12 coke oven batteries and produces approximately 4.7 million tons of coke annually, serving customers in the commercial coke market as well as U. S. Steel’s steelmaking facilities.
Recently, the company released its financial results for the second quarter of 2011. The company reported second-quarter 2011 net operating profit of $1.33 per share versus a net operating loss of 17 cents in the year-ago quarter. Quarterly results also exceeded the Zacks Consensus Estimate of $1.26 per share.
Net income was $222 million in the quarter versus net loss of $25 million in the second quarter of 2010.
Revenue in the quarter improved 9.4% to $5.1 billion from $4.7 billion in the year-ago quarter. Results were driven primarily by higher average realized prices and stable raw materials costs in the Flat-rolled segment. However, results were below the Zacks Consensus Estimate of $5.5 billion.
Shipments totaled 5.5 million tons, down 6.5% year over year, primarily due to weaker demand in Europe that led to a 21% drop in shipments.
U.S. Steel is an integrated steel producer of flat-rolled and tubular products with major production taking place in North America and Europe. It is currently the tenth largest steel producer in the world with an annual raw steel production capability of 31.7 million tons. It competes with international steel giants like ArcelorMittal (MT), BaoSteel, Posco (PKX), Nippon Steel and ThyssenKrupp.
We currently maintain our Neutral recommendation on United States Steel with its quantitative Zacks # 4 Rank (short-term ‘Sell’ rating).
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