Copyright 2000 P.G. Publishing Co.
Pittsburgh
Post-Gazette
July 22, 2000, Saturday, SOONER EDITION
SECTION: BUSINESS, Pg. C-6
LENGTH: 371 words
HEADLINE:
OIL, GAS PRICES FUEL USX PROFITS
BYLINE: LEN BOSELOVIC, POST-GAZETTE STAFF WRITER
BODY:
USX Corp.'s profits more than doubled
in the second quarter, as earnings of the company's Marathon Group were
energized by higher oil and natural gas prices. Net income at
U.S. Steel was flat.
The steel and energy businesses earned a record $
423 million in the quarter vs. profits of $ 189 million a year ago. Revenue also
hit a record, rising 55 percent to $ 10.49 billion. The
performance comes on the heels of record first-quarter income. Marathon
accounted for nearly 90 percent of the profits, posting net income of $ 367
million, or $ 1.18 per diluted share, vs. earnings of $ 134 million, or 43 cents
per share, in the year-ago quarter. Revenue increased 62 percent to $ 8.89
billion.
U.S. Steel's second-quarter earnings totaled $ 56 million, or
62 cents per diluted share, vs. net income of $ 55 million, or 59 cents per
share, a year ago. Excluding special items in both years, profits doubled to $
66 million. Revenue increased 24 percent to $ 1.61 billion, while shipments rose
14 percent.
Both companies topped analysts' expectations. But investors
shrugged off Marathon's results. The company's shares closed yesterday at 24
9/16, down 7/8. U.S. Steel finished up 1/8 at 18 15/16.
U.S. Steel
benefited from higher prices, increased shipments and a better performance by
its joint ventures. Steel prices were about 6 percent above year-ago levels, but
Chairman Thomas J. Usher said the short-term outlook is dimming in the face of
surging imports and a slowing economy.
An unplanned two-week outage of a
blast furnace at the company's Fairfield Works in Alabama, after-tax charges of
$ 10 million for environmental and legal contingencies, and higher natural gas
prices also crimped the steelmaker's performance.
Higher energy prices
were good news for Marathon. Income from the company's exploration and
production operations nearly tripled while operating earnings from refining,
marketing and transportation more than doubled.
Rising prices offset a 5
percent decline in oil and gas production. A barrel of Marathon's oil sold for
an average of $ 25.74 in international markets during the quarter, up 73 percent
from year-ago levels. Average natural gas prices jumped 36 percent.
LOAD-DATE: July 23, 2000 
