Lots of Sparks at U.S. Steel: Fool by Numbers

On Jan. 29, U.S. Steel (NYSE: X  ) released fourth-quarter earnings for the period ended Dec. 31.

• Net profit increased by 172.5%, helped by a reduced tax rate.
• The company retired most of its 10 3/4% senior notes during the quarter.
• The company repurchased more than 700,000 shares for $46 million.
• For the year, free cash flow increased 126%.
• U.S. Steel is a two-star stock, according to Motley Fool CAPS. Tell us what you think about the company.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$3,774	$3,470	8.8%
Net Profit	$297	$109	172.5%
EPS	$2.50	$0.85	194.1%
Diluted Shares	119.0	128.2	(7.1%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	14.6%	14.0%	0.6
Operating Margin	9.0%	6.4%	2.6
Net Margin	7.9%	3.1%	4.7

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$1,422	$1,479	(3.9%)
Accounts Rec.	$1,799	$1,609	11.8%
Inventory	$1,604	$1,466.0	9.4%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$1,314	$1,256	4.6%
Long-Term Debt	$943	$1,363	(30.8%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	$1,689	$1,218	38.7%
Capital Expenditures	$612	$741	(17.4%)
Free Cash Flow	$1,077	$477	125.8%

Find out why Fools always follow the money.

Related Companies:

• Allegheny Technologies (NYSE: ATI  )
• IPSCO (NYSE: IPS  )
• Steel Dynamics (Nasdaq: STLD  )
• Nucor (NYSE: NUE  )
• Gerdau Ameristeel (NYSE: GNA  )

Related Foolishness:

• Foolish Forecast: U.S. Steel Says ...
• Steel Yourself
• Foolish Forecast: Steely Schnitzer

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.