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GENEVA STEEL ANNOUNCES THIRD QUARTER 1993 RESULTS

 VINEYARD, Utah, Aug. 3 /PRNewswire/ -- Geneva Steel Company (NYSE: GNV) reported today a net loss of $1.03 million or a 7 cents loss per common share (excluding the effect of the company's preferred stock) for the third fiscal quarter ended June 30, 1993. This compares with a net loss of $4.57 million or a 30 cents loss per common share for the immediately preceding quarter and a net loss of $1.98 million or a 13 cents loss per common share for the same third quarter of the previous fiscal year. The operating income for the quarter was $2.5 million. This compares with an operating loss of $3.2 million for the immediately preceding quarter and operating income of $.33 million for the same third quarter of the previous fiscal year. The company had positive earnings for the month of June.
 For the nine months ended June 30, 1993, the company reported a net loss of $9.53 million or a 64 cents loss per common share, which compares with a $9.77 million or a 65 cents loss per common share for the same period last year. Accounting for the issuance of and dividends on the company's preferred stock issued in March 1993 increases the net loss per common share for the quarters ended March 31,1993 and June 30, 1993 to 32 cents and 17 cents, respectively, and for the nine months ended June 30, 1993 to 76 cents.
 Sales and tons shipped for the quarter were $124.95 million and 404,000 tons, respectively, compared with $113.53 million and 356,000 tons during the same period last year.
 "Third fiscal quarter results reflect both increased shipments and improved margins as compared to the second fiscal quarter," said Joseph A. Cannon, chairman and chief executive officer. Shipments increased from 388,000 tons during the second quarter to 404,000 tons during the third quarter, a 4.1 percent increase. "Moreover, price realization increased during the third quarter which significantly improved operating results," said Cannon. Average price realization increased by 5.7 percent as compared to the second quarter of 1993.
 MODERNIZATION. Also during the quarter, the company announced that its continuous casting facility is expected to be completed in the first quarter of calendar 1994, ahead of the originally scheduled completion date of June 1994. In addition, the company announced that it is proceeding with installation of a wide plate coiler and related improvements designed to coil steel plate up to 120-inches in width and 1-inch in thickness.
 "The new plate coiler will be the final component of the company's wide coiled plate project and is expected to be installed by approximately year-end 1994," said Cannon.
 As part of the wide coiled plate project, the company is also installing upgrades to its existing facilities that will allow it to directly roll coiled plate up to 96-inches wide and to uncoil and shear coiled plate up to 120-inches wide. These upgrades are expected to be completed simultaneously with the completion of Geneva's continuous casting facility during the first quarter of 1994.
 TRADE CASES. The International Trade Commission issued final injury determinations in the flat-rolled steel cases on July 27, 1993. The ITC found injury in cases covering 97 percent of the value of the subject imports with respect to the cut-to-length plate product cases and no injury with respect to the hot-rolled products cases. Plate and hot- rolled coil products are Geneva's primary products. "The ITC's rulings pertaining to the plate cases should benefit Geneva Steel," said Robert J. Grow, president and chief operating officer. "As the modernization program nears completion, Geneva's product mix will likely shift towards plate products. We are concerned, however, that the hot-rolled product market may come under increased price pressure from dumped and subsidized foreign offerings as a result o the ITC's final rulings."
 "We intend to monitor this situation closely and do not rule out bringing additional cases if warranted by the circumstances," said Grow. "We are also considering the possibility of commencing additional plate cases with respect to certain countries not covered by the current cases."
 Geneva Steel is the only integrated steel mill operating west of the Mississippi River. The company manufactures hot-rolled steel sheet, plate and pipe for sale primarily in the western and central United States.
 GENEVA STEEL COMPANY
 Statements of Income and Selected Financial Data
 (Unaudited, in thousands, except per share data)
 Periods ended Three months Nine months
 June 30 1993 1992 1993 1992
 Net sales $124,954 $113,526 $341,645 $318,636
 Cost of sales 117,359 107,934 330,667 307,980
 Gross margin 7,595 5,592 10,978 10,656
 S,G&A expenses 5,109 5,266 14,658 17,371
 Income (loss) from
 operations 2,486 326 (3,680) (6,715)
 Other income (expense):
 Interest and other income 744 131 1,012 787
 Interest expense (4,917) (3,703) (12,962) (10,095)
 Total (4,173) (3,572) (11,950) (9,308)
 Loss before benefit
 for income taxes (1,687) (3,246) (15,630) (16,023)
 Benefit for income taxes (658) (1,266) (6,096) (6,257)
 Net loss (1,029) (1,980) (9,534) (9,766)
 Less redeemable preferred
 stock dividends and
 accretion for original
 issue discount 1,578 -- 1,839 --
 Net loss applicable to
 common shares (2,607) (1,980) (11,373) (9,766)
 Net loss per common share (.17) (.13) (.76) (.65)
 Weighted average shares
 outstanding 15,065 15,033 15,052 15,017
 Steel tons shipped 404 356 1,128 1,002
 Capital expenditures 20,557 12,821 42,148 56,956
 Depreciation expense 5,251 4,812 15,594 12,849
 Summary Balance Sheet Information
 (Dollars in thousands, unaudited)
 Period ending 6/30/93 9/30/92
 Cash and cash equivalents $ 92,790 $ 3,122
 Current assets 209,374 132,701
 Property, plant and equipment(net) 279,348 252,797
 Total assets 497,761 390,462
 Current liabilities 82,991 57,047
 Long-term debt 224,991 178,182
 Total liabilities 327,121 248,630
 Redeemable preferred stock 34,359 --
 Total stockholders' equity 136,281 141,832
 -0- 8/3/93
 /CONTACT: Dennis L. Wanlass of Geneva Steel Company, 801-227-9302/
 (GNV)


CO: Geneva Steel Company ST: Utah IN: MNG SU: ERN

MP-TS -- NY052 -- 8916 08/03/93 12:55 EDT
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Publication:PR Newswire
Date:Aug 3, 1993
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