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U.S. Steel results miss Street expectations

United States Steel Corp. posted lower-than-expected quarterly profit and revenue Monday, although the company did rebound from three consecutive quarterly losses, helped in part by higher selling prices and stable supply costs.

Second-quarter net profit was $222-million (U.S.), or $1.33 per share, compared with a net loss of $25-million, or 17 cents per share, a year earlier.

Excluding 21 cents per share of foreign currency gains from inter-company loans, the company earned $1.12 per share.

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By that measure, analysts expected earnings of $1.21 per share, according to Thomson Reuters I/B/E/S.

Sales rose 9 per cent to $5.12-billion. Analysts expected revenue of $5.49-billion, according to Thomson Reuters I/B/E/S.

John Surma, U.S. Steel's chief executive officer, warned that United States and Europe "continue to face an uneven economic recovery."

"The continuing fiscal uncertainty in the U.S. and Europe is not helping the situation," he said in a statement. "Reflecting the effects of a slowing economy, we expect to report an overall lower operating profit in the third quarter."

Shares of U.S. Steel fell to $43.94 in after-hours trading Monday from their closing price of $44.29 on the New York Stock Exchange.

In April, after posting a first-quarter loss, U.S. Steel said higher steel prices and shipments would lead to a significant profit in the second quarter.

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