Steel industry analysts appear to be split on the impact of the new labor contract agreed to a week ago by the United Steelworkers union and U.S. Steel Corp., Pittsburgh.

Charles Bradford, analyst at Bradford Research/Soleil Securities Inc., New York, said he believes the contract will be "very expensive" for U.S. Steel, though he added that the company could certainly afford to pay.

"It is an expensive contract, but at the same time the company is making a lot of money these days," he said. "U.S. Steel is nicely profitable these days and that's great."

Bradford said in a research note that the agreement would reduce third-quarter earnings at the company by 70 cents per share. That forecast sent the company's shares down 3.9 percent on Friday.

Bradford's estimate ran counter to that of Mark Parr, a steel industry analyst with KeyBanc Capital...