Birmingham Steel Corporation Announces Fourth Quarter and Fiscal 1998 Results.BIRMINGHAM, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Aug. 12, 1998--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 final results for the fourth quarter and earnings for the fiscal year ended June 30, 1998. Consistent with statements in a Company press release issued July 29, Birmingham Steel reported a net loss for the fourth quarter of $4,245,000, or $(.14) per share. Included in the fourth quarter results were one-time pre-tax charges of $12.4 million, or $.25 per share after tax, related to the write-off of the Company's 25.4% equity investment in Laclede Steel Laclede Steel, incorporated in 1911, was a manufacturer of alloy and carbon steel. The company owned one electric furnace, and owned mills in Alton, Illinois, Fairless Hills, Pennsylvania, Vandalia, Illinois. Its products included strip, hot rolled bars, wire and plate. ; and $2.1 million, or $.04 per share after tax, related to the write-down of other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. . Fourth quarter results also included pre-tax gains of $6.3 million, or $.11 per share after tax, from the sale of property and income from settlements with electrode electrode, terminal through which electric current passes between metallic and nonmetallic parts of an electric circuit. In most familiar circuits current is carried by metallic conductors, but in some circuits the current passes for some distance through a suppliers. In addition, the Company incurred pre-tax start-up expenses primarily related to the Company's Memphis melt shop of $10.5 million, or $.20 per share after tax. For the same period of the previous fiscal year, net income was $1,555,000, or $.05 per share, including pre-tax charges for unusual items of $4.5 million, or $.09 per share after tax. 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 fiscal 1998 fourth quarter were $282,820,000 compared with net sales of $277,528,000 reported for the same period last year. Shipments increased to 830,000 tons compared with 811,000 tons shipped in the fourth quarter of fiscal 1997. For the fiscal year ended June 30, 1998, the Company reported net income of $1,629,000, or $.05 per share. Results for the year included pre-tax charges of $15.1 million, or $.30 per share after tax, related to the Company's share of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. at Laclede and the write-off of the Laclede investment; and $2.1 million, or $.04 per share after tax, related to the write-down of other assets. Fiscal 1998 results also included pre-tax gains of $9.6 million, or $.17 per share after tax, from the sale of property and income from settlements with electrode suppliers. Pre-operating and start-up expenses, primarily related to the Memphis melt shop, totaled $34.2 million before tax, or $.69 per share after tax. For the prior fiscal year, the Company reported net income of $14,417,000, or $.50 per share, including pre-tax charges for unusual items of $15.2 million, or $.30 per share after tax. Net sales for fiscal 1998 increased 16% to $1,136,019,000 compared with $978,948,000 for fiscal 1997. Steel shipments for fiscal 1998 were 3,329,000 tons, up 17% from 2,836,000 tons in the prior fiscal year. Robert A. Garvey, Chairman and Chief Executive Officer, stated, "Fiscal 1998 was a record year for sales and shipments. The Company's net sales exceeded $1 billion for the first time, reflecting strong business conditions and continued diversification of our product mix. With the exception of previously reported start-up problems at our new Memphis melt shop and operating losses at our West Coast scrap facility, we achieved overall solid performance at our operating divisions. "As we reported earlier, given the operating challenges and financial uncertainties facing Laclede, we believe it was in the best interest of Birmingham Steel's shareholders to fully discount the Laclede investment. As a result of this action, Laclede financial results will not adversely impact Birmingham Steel's financial statements in the future, although Birmingham Steel will continue to hold 25.4% of the outstanding shares of Laclede." 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 produces steel reinforcing bar, merchant products and SBQ SBQ Sociedade Brasileira de Quimica (Portugese) SBQ Special Bar Quality (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." Notice: Except for historical information, the matters described in this document 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. , equipment breakdowns or failures, 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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , 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)
3 Months Ended 12 Months Ended
June 30, June 30,
-------------- ----------------
1998 1997 1998 1997
------ ----- ----- ------
Revenues $282,820 $277,528 $1,136,019 $978,948
Net income (loss) $(4,245) $1,555 $ 1,629 $14,417
Earnings (loss) per share $ (.14) $ .05 $ .05 $ .50
Average shares outstanding 29,647 29,677 29,674 29,091
CONTACT: Birmingham Steel, Birmingham
J. Daniel Garrett, 205/970-1213
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