Steel: Capital Ideas

Long burdened by unimaginative management, obsolete equipment and growing competition, U.S. Steel two years ago launched a massive reorganization program to bolster its lagging sales and earnings. The world's biggest steelmaker chopped its executive payroll, closed down or consolidated overlapping divisions and offices and sharply increased its research and capital expenditures. The effort is only now beginning to pay off. U.S. Steel's first-half earnings, while still substantially below those of the mid-50s, were 38% higher than in 1964. Sales were up 26%. Last week, determined to maintain the new momentum, Board Chairman...

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