BIRMINGHAM STEEL CORPORATION ANNOUNCES 14% INCREASE IN NET INCOME.BIRMINGHAM, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Oct. 14, 1997-- POSTS RECORD STEEL SHIPMENTS Birmingham Steel Corporation (NYSE NYSE See: New York Stock Exchange :BIR BIR British Institute of Radiology BIR Bureau of Internal Revenue BIR Bureau of International Recycling BIR Baculovirus IAP Repeat BIR Biomedical Imaging Resource BIR Bureau of Intelligence and Research (US State Department) ) today announced significantly increased net income and record steel shipments for the first quarter ended September 30, 1997. The Company reported net income of $7,245,000, or $0.24 per share, up 14% from $6,348,000, or $.22 per share, reported in the same period last year. Results for the first quarter of fiscal 1998 include pre-operating start-up expenses of $2.5 million, or approximately $0.05 per share, primarily related to the Company's new melt shop in Memphis, Tennessee For the ancient Egyptian capital, see . Memphis is a city in the southwest corner of Tennessee, and the county seat of Shelby County. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just below the mouth of the Wolf River. . The Memphis melt shop is expected to begin start-up production in November 1997. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter rose 23% to $287,547,000 from $233,422,000 a year ago. The Company achieved record steel shipments of 837,000 tons, up 25% from 669,000 tons in the prior-year period. Shipment records were also established during the quarter for rebar re·bar n. 1. A rod or bar used for reinforcement in concrete or asphalt pourings. 2. A group of such rods forming a grid. [re(inforcing) bar.] (372,000 tons) and merchant products (231,000 tons). Robert A. Garvey, Chairman and Chief Executive Officer, stated, "We are pleased to report improved earnings for the first quarter of fiscal 1998. With the exception of the Cleveland division, operating and financial results were generally in line with expectations. We were particularly pleased with the significant increase in overall shipments. Merchant product shipments rose 79% from the same period last year, reflecting the success of our strategy to penetrate new markets." Garvey continued, "Because of an unexpected softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in automotive-related shipments, the financial performance at the Cleveland division was below expectations; however, significant operational and cost improvements were realized during the quarter. In addition, product quality issues that had previously hampered Cleveland's results have been virtually eliminated. Had shipments of SBQ SBQ Sociedade Brasileira de Quimica (Portugese) SBQ Special Bar Quality (special bar quality products) been at expected levels, Cleveland would have been profitable. "Business conditions in the steel industry remain strong," said Garvey. "Although volumes could be influenced by normal seasonal factors, we expect that healthy demand for steel products will continue in the second quarter. "The new Memphis melt shop is on track for operational start-up in November. This $210 million facility will provide high quality SBQ semi-finished steel billets to Cleveland for substantially lower cost than current third party billet suppliers. Memphis will be ramping up production during the second and third fiscal quarters, and we expect the new melt shop to be producing at an annual rate of 800,000 tons by June 1998," Garvey concluded. Birmingham Steel operates in the mini-mill sector of the steel industry and conducts operations at facilities located across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company specializes in producing steel reinforcing bar, merchant products and SBQ (special bar quality) bar, rod and wire. The common stock of Birmingham Steel Corporation is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "BIR." Except for historical information, the matters described in this document, including statements concerning the Company's anticipated financial performance during the upcoming fiscal year, and the completion date and anticipated effect of capital projects currently in progress, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including economic conditions, market demand factors, unanticipated start-up and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and start-up delays, financing considerations, and the performance of the various joint ventures in which the Company is involved, as well as other risks described from time to time in the Corporation's periodic and special filings with the Securities and Exchange Commission. Any forward-looking statements contained in this document speak only as of the date hereof, and the Corporation disclaims any intent or obligation to update such forward-looking statements. Comparisons of results for current and prior periods are not necessarily indicative of future performance and should not be relied on for any purpose other than as historical data. -0-
BIRMINGHAM STEEL CORPORATION
Financial Highlights
(in thousands, except per share amounts)
Three Months Ended
September 30,
1997 1996
Revenues $287,547 $233,422
Net income $ 7,245 $ 6,348
Earnings per share $ .24 $ .22
Average shares outstanding 29,685 28,625
CONTACT: Birmingham Steel Corp., Birmingham J. Daniel Garrett, 205/970-1213 |
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