USX’s Income Drops 7% to $163 Million
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.
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