January 27, 2015 / 10:12 PM / 4 years ago

UPDATE 1-US Steel profit down, warns of strong dollar, low oil in '15

(Adds details of results, outlook for 2015, stock price)

By Nick Carey

CHICAGO, Jan 27 (Reuters) - U.S. Steel Corp on Tuesday warned that low oil prices and the strong U.S. dollar could negatively impact its business in 2015 but said the potential for U.S. higher consumer spending could help lift demand.

The Pittsburgh-based company gave its assessment of what it called a “volatile market” in 2015 as it reported a lower fourth quarter net profit that was hurt by falling steel prices and the strong U.S. dollar. But the company’s earnings came in well above market expectations and sent its stock up nearly 9 percent in aftermarket trading.

The company said that in 2015 the U.S. market may continue to see high levels of steel imports, which it said it believed “in many cases are unfairly traded.”

U.S. Steel idled plants in Illinois, Indiana and Ohio, citing weak demand from the oil industry. The plant closures resulted in more than 1,100 layoffs.

U.S. Steel reported a fourth-quarter net profit of $275 million, down more than 7 percent from $297 million a year earlier.

U.S. Steel reported earnings per share of $1.83, compared with $1.93 a year earlier. Analysts had expected earnings per share of 87 cents.

The company reported revenue for the quarter of $4.07 billion, down from $4.27 billion a year earlier.

In aftermarket U.S. Steel was trading at $23.09, more than 8.5 percent above the stock’s closing price of $21.27. (Reporting By Nick Carey; Editing by Cynthia Osterman)

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