BIRMINGHAM STEEL CORPORATION COMMENTS ON EXPECTED FIRST QUARTER EARNINGS.BIRMINGHAM, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Sept. 27, 1995--James A. Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. , Jr., Chairman and Chief Executive Officer of 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 that the Company expects earnings for the first quarter of fiscal 1996 ending September 30, 1995, will be below the results of the previous year. Todd stated, "As a result of selling price pressures, increased direct material costs and start-up expenses for the new Seattle melt shop, first quarter earnings per share will fall approximately 30% short of last year's first quarter earnings of $.42 per share." The Company plans to release first quarter results on October 17. Todd remarked, "Reacting to market conditions, we have instituted a $20 per ton reduction in the selling price of merchant products. In addition, competitive pressures from productive capacity increases in the 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.] sector have resulted in an overall $20 per ton reduction in selling price for new orders shipped during the quarter." Todd continued, "Gross margins have been further squeezed by increased melting costs. The main component of this increase is direct materials, particularly silicon manganese manganese (măng`gənēs, măn`–) [Lat.,=magnet], metallic chemical element; symbol Mn; at. no. 25; at. wt. 54.938; m.p. about 1,244°C;; b.p. about 1,962°C;; sp. gr. 7.2 to 7. . "Results for the first quarter have also been affected by the write-off of expenses related to the previously disclosed start-up of the new Seattle melt shop, which were approximately $1.4 million. While this write-off has a negative impact on first quarter results, the start-up has exceeded expectations and eliminated the need to supplement production by shipping billets from eastern mills." Birmingham Steel operates steel mini-mills producing primarily steel reinforcing bar and merchant products, and also specializes in manufacturing high-quality rod and wire from semi-finished billets at its American Steel & Wire subsidiary. 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." CONTACT: Birmingham Steel Corporation, Birmingham John M. Casey, 205/970-1238 |
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