USX’s Income Drops 7% to $163 Million
PITTSBURGH — USX Corp. said Tuesday that it will transfer control of its steel division to a wholly owned subsidiary, a move seen by analysts as paving the way for the once-mighty steel company to move out of the business altogether.
Separately, on Tuesday the Pittsburgh-based conglomerate also reported lower third-quarter profit.
The company said it had net income in the July to September period of $163 million, down 7% from a year ago.
But operating income--net income minus special charges--rose 25% to $382 million. Sales also rose 16%, to $5.1 billion.
The company’s energy business had operating income of $238 million on sales of $3.7 billion, compared to $189 million on sales of $3 billion a year ago.
The steel segment had operating income of $63 million on sales of $1.3 billion, down from $85 million on the same sales in the third quarter of 1989.
USX--formerly U.S. Steel Corp. but now a diversified manufacturer heavily involved in the energy business--said its board of directors approved spinning off the steel-producing USS division into a separate company.
The move “will provide flexibility for any steel restructuring undertaken by the firm,†said USX Chairman Charles Corry.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
