United States Steel Corporation

confidence that the productive capacity of the steel industry assures ample and
quick supply.
Production of steel ingots and castings during the year amounted to 27.3
million net tons, or 65.1 per cent of U. S. Steel's rated capacity, and represented
99.5 per cent of the 1957-1959 average production, compared with
89.4 in 1959.
Shipments of steel products during 1960 were 18.7 million tons compared
with 18.1 million tons in 1959.
U. S. Steel's annual ingot capacity on January 1, 1961, was not materially
increased over that reported for January 1, 1960, when it represented about
28 per cent of the reported capacity for the steel industry as a whole.
INCOME, SALES, DIVIDENDS, TAXES
Income for 1960 was $304.2 million or 8.2 per cent on sales of $3,698.5 million.
This compares with income of $254.5 million or 7.0 per cent on sales of
$3,643.0 million in 1959, a year adversely affected by the 116-day steelworkers'
strike, all as more fully set forth in the financial statements.
Dividends of $7.00 per share were declared for the year on the 7 per cent
cumulative preferred stock. Dividends for the year on the common stock were
$3.00 per share, consisting of four declarations of 75 cents each in April, July
and October and in January 1961. Total dividends declared for 1960 on both
classes of stock aggregated $187.2 million or 5.1 per cent of sales and 61.6
per cent of income. Income reinvested in the business was $117.0 million.
Estimated United States and foreign taxes on income together with state,
local and miscellaneous taxes amounted to $377.8 million for 1960 comp'lred
with $326.6 million for 1959.
PROPERTY EXPENDITURES
U. S. Steel's expenditures for additions to and replacements of facilities
amounted to $492.4 million in 1960 compared with $366.1 million in 1959.
Property expenditures authorized during the year amounted to $297 million
compared with $331 million in 1959. On December 31, 1960, the amount
required to complete all authorized projects was estimated at $500 million
compared with a corresponding amount of $695 million at the close of the
prior year. During 1960 U. S. Government securities previously set aside to
cover, in part, property expenditures authorized were drawn down in the
amount of $195 million. The balance of such securities set aside amounted to
$300 million at December 31,1960.
The $492.4 million of property expenditures in 1960 compares with
recorded wear and exhaustion of $208.4 million for the year. This latter
amount was inadequate to recover the buying power originally expended for
facilities used up in the year. The resulting deficiency is primarily due to
inflation of the cost of new facilities while depreciation under existing tax laws
continues to be based on the original cost of facilities purchased many years
ago. The need for revision of the tax laws as they relate to depreciation is more
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