New York - U.S. Steel should report its first profitable quarter since October 2008 in Q3. U.S. Steel reported 198 million dollars in income from operations in Q2 but the results sank due to a 96 million dollar impairment on a loan to a European subsidiary. However, the Euro has increased dramatically since the end of June and in the next quarter U.S. Steel will recognize an approximately 119 million dollar gain from currency. This number is currently not being factored into investors' predictions for Q3.
Kibbens estimates U.S. Steel will earn 91 cents a share but stripping out one time gains from the Euro his estimate is 18 cents. Kibbens had been recommending investors to buy the Euro for the entire summer, as analysts incorrectly argued the U.S. dollar and the Euro would reach parity.
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