Birmingham Steel Corporation reports record second quarter earnings; net income up 229 percent.BIRMINGHAM Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Jan. 17, 1995--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 record net income of $12,369,000, or $.42 per share, for the second quarter ended Dec. 31, 1994. Second quarter earnings were up 229 percent compared with $3,764,000, or $.17 per share, earned for the same period last year, and marked the second consecutive quarter in which the company has reported record earnings. Results for the previous- year period reflect only one month of sales and earnings from the company's American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Steel & Wire business unit, which was acquired in November November: see month. 1993. Earnings for the most recent quarter include the effect of an after-tax charge of $351,000, or $.01 per share, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of certain melt shop assets at the company's Seattle facility which will be replaced with new equipment later in fiscal 1995. For the six months ended Dec. 31, 1994, the company reported consolidated net income of $24,574,000, or $.84 per share, an increase of 230 percent from $7,450,000, or $.34 per share, reported for the same period in the previous year. The results for the most recent six-month period also established an earnings record for the company. Earnings for the first half of fiscal 1995 include non-recurring after-tax charges of $727,000, or $.02 per share. Steel shipments for the second quarter were 541,000 tons, up 13 percent from 478,000 tons reported for the same period last year. 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 increased 38 percent to $203,238,000 from $146,802,000 reported in the prior-year period. Shipments for the first six months of fiscal 1995 were 1,161,000 tons, up 25 percent from 926,000 tons in the comparable period last year. Net sales for the six-month period increased 54 percent to $423,839,000 from $274,432,000 last year. 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. , chairman and chief executive officer of Birmingham Steel, commented, "We are pleased to report record earnings for the second consecutive quarter. These record results were achieved in the face of rising scrap costs and seasonal shipment disruptions. Although tons shipped were below the first quarter levels, shipments continued at a robust pace. Sale of a greater percentage of merchant products enabled the Company to achieve higher selling prices and maintain selling price/cost spreads which were essentially unchanged from the first quarter." Todd continued, "Several production and operating records were achieved in the second quarter. We expect operating cost reductions and improved productivity in the coming quarters as all of the company's facilities operate at higher production levels. "The outlook for the automotive and construction industries is generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. for calendar 1995. While we expect scrap prices to remain under pressure, we expect market conditions to continue to support increases in finished product selling prices to compensate for potential scrap price escalations. In addition, cost reductions should improve margins. Shipments from the Seattle operation, on the other hand, will be affected by the West Coast floods. "Birmingham Steel is well on the way to achieving record earnings in fiscal 1995. However, we believe financial performance can be improved at each of our facilities, and we are focusing on ways to reduce costs and continue our equipment modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, program to improve productivity. We also continue to explore opportunities for growth in the steel industry," Todd concluded. Birmingham Steel operates steel mini-mills producing primarily steel reinforcing bar and merchant products, and also specializes in manufacturing high-quality steel 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". -0-
BIRMINGHAM STEEL CORPORATION
Financial Highlights
Three Months Ended December 31, %
1994 1993 Change
Revenues 203,238,000 146,802,000 38%
Net income 12,369,000 3,764,000 229%
Earnings per share .42 .17 147%
Average shares outstanding 29,450,335 22,295,765 32%
Six Months Ended December 31, %
1994 1993 Change
Revenues 423,839,000 274,432,000 54%
Net income 24,574,000 7,450,000 230%
Earnings per share .84 .34 147%
Average shares outstanding 29,427,390 21,853,095 35%
CONTACT: Birmingham Steel Corp., Birmingham J. Daniel Garrett, 216/429-7640 |
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