US Steel sees profitable operations going forward

Looking ahead to the second quarter, Surma said, "We anticipate being profitable in all three of our operating segments in the second quarter of 2010 as gradually improving business conditions should be reflected in our operating results, most notably for our Flat-rolled segment.  We continue to experience healthy order rates from most of our end markets, resulting in increased production levels.  In North America, reported inventories in key end markets, such as automotive and service centers, remain below historical averages, as do flat-rolled product imports.  In Europe, imports have also remained below historical averages and reported inventories remain low across our end markets.  Our Tubular segment is also benefitting from both increased order rates, particularly for small diameter alloy oil country tubular goods (OCTG), and a continuing steady decline in reported U.S. OCTG inventory levels from the record highs of early 2009.  In summary, we remain cautiously optimistic in our outlook for end user demand for all three of our operating segments in line with a gradual and continuing economic recovery."