On April 24, steel producer U.S. Steel
- Year-over-year net income increased 6.6% to $273 million, supported by solid results from the flat-rolled and tubular segments, along with strong growth in the firm's European operations.
- The company repurchased more than 5% of its outstanding shares over the past year, vaulting that 6.6% earnings gain into a 12.8% improvement to EPS at $2.30.
- In the second quarter, management expects flat-rolled sales to improve on higher shipment volumes and utilization rates, while prices and shipments for tubular are expected to be lower than first-quarter levels as imports and customer inventories remain high.
- In terms of earnings, management expects "overall results in line with the first quarter."
- U.S. Steel is rated three stars in Motley Fool CAPS, as is fellow American metals stalwart Alcoa
(NYSE:AA) .
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$3,756 |
$3,728 |
0.8% |
|
Net Profit |
$273 |
$256 |
6.6% |
|
EPS |
$2.30 |
$2.04 |
12.7% |
|
Diluted Shares |
119.0 |
125.6 |
(5.2%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
15.4% |
16.9% |
(1.5) |
|
Operating Margin |
9.2% |
9.9% |
(0.7) |
|
Net Margin |
7.3% |
6.9% |
0.4 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,552 |
$1,471 |
5.5% |
|
Accounts Rec.* |
$1,954 |
$1,829 |
6.8% |
|
Inventory |
$1,618 |
$1,483 |
9.1% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable* |
$1,433 |
$1,267 |
13.1% |
|
Long-Term Debt |
$940 |
$1,359 |
(30.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$319 |
$228 |
39.9% |
|
Capital Expenditures |
$108 |
$127 |
(15%) |
|
Free Cash Flow |
$211 |
$101 |
108.9% |
Free cash flow is a Fool's best friend.
Related Foolishness:
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