US Steel Earnings Report (X)

Date: 4/26/2011

Trading Education - US Steel Earnings Report (X) X U.S. Steel conf. call summary (49.72 -2.11)Co said its expecting a further significant build in Accounts Receivables given the higher average realized flat-rolled prices the co is anticipating in Q2. Co expects to report a significant overall operating profit in Q2 primarily due to the realization of price increases in its flat-rolled segment.

Co said flat-rolled results for Q2 2011 are expected to improve significantly YoY driven largely by significantly higher average realized prices.Order rates for most customer groups, which began to improve later in Q4, remained firm throughout Q1, but recent order rates have moderated.

While order rates have moderated, the co still remains cautiously optimistic that improving global economic conditions will continue further stimulating end-user demand.Accounts Payable changes should reflect higher operating and capital spending activity in the quarter and as for inventory, we expect a build during the quarter as we rebuild our North American steel inventories which finish the quarter at lower than planned levels, and also as we strive to meet the requirements of our automotive customers that may have shifted from Q2 to later periods.

Co is actively looking at refinancing opportunities for the ~200 mln of environmental revenue bonds that we are obligated to repay or refund by the end of 2011.Second Quarter results for Tubular are expected to be in line with Q1 as the benefits of increased average realized prices in shipments will be offset by higher costs for hot roll bands supplied by our flat-rolled segment and purchased rounds. Our average realized transaction prices are expected to increase from the First Quarter levels as price increases take effect and product mix improves.

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