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ACME METALS REPORTS SECOND QUARTER EARNINGS OF $2,056,000 OR 38 CENTS PER SHARE

 RIVERDALE, Ill., July 22 -- Acme Metals Incorporated (NASDAQ: ACME) today reported second quarter net income of $2,056,000, or 38 cents per common share, on sales of $117,169,000. In 1992's second quarter, Acme Metals had a net loss of $1,288,000, or 24 cents per share, on sales of $99,993,000.
 The second quarter 1992 loss, originally reported at $949,000, or 18 cents per share, was later adjusted in connection with the company's adoption of FAS 106 and FAS 109.
 For 1993's first half Acme earned $2,170,000, or 40 cents per share, on sales of $225,032,000. Acme Metals' first half 1992 loss, as originally reported, was $733,000 or 14 cents per share, on sales of $198,515,000. The loss, as later restated following adjustment for FAS 106 and FAS 109, was $51,432,000, or $9.53 per share.
 ``The significant improvement in our second quarter results, compared to last year's second quarter, reflects a 17 percent increase in net sales, including a modest increase in average selling prices,'' commented Brian W.H. Marsden, chairman and chief executive officer.
 This year's second quarter was also impacted by an unplanned repair expenditure at Acme Steel's basic oxygen furnace steelmaking shop and a one-time unfavorable adjustment of royalty income associated with coal properties, he added.
 The company announced selling price increases for its commercial steel products in April. However, timing effects due to standing contracts, competitive situations and customer hedge-buying prior to the price increase resulted in second quarter selling prices that were only marginally improved over the first quarter.
 ``A further price increase for commercial steel was announced, effective July 5, and consequently, we expect selling prices to gradually strengthen through the balance of the year,'' the Acme chairman noted.
 The largest factor in the first half earnings improvement, compared to 1992's first half was the 13% increase in net sales due to higher shipments.
 ``Following full-year losses in 1991 and 1992, Acme Metals has now been profitable for three consecutive quarters,'' Marsden added.
 Working capital at the end of the second quarter waas $97,309,000, up from $92,561,000 at the end of the first quarter. The current ratio was unchanged at 2.5 to 1.
 Stockholders equity was $91,690,000, or $17.07 per share, up from $89,630,000, or $16.68 per share, at the end of the first quarter.
 ``Looking ahead to 1993's third quarter, we see continued strong business conditions, as evidenced by our full order book and slightly higher prices. However, earnings will be reduced by the annual summer vacation shutdowns at customer plants; and by major planned maintenance outages at our Acme Steel Company, Acme Packaging Corporation, and Universal Tool operations and the associated short-term operating ineffiiciencies. In 1992, Acme's maintenance outages were scheduled during the second quarter,'' Acme Metals' Marsden explained.
 ``During the third quarter, we expect to conclude negotiations for a new labor contract at our Acme Steel Company and Ame Packaging Corporation Chicago-area operations. The current contract expires Aug. 31, 1993, and we are confident we can reach a competitive long term agreement,'' he noted.
 Labor negotiations are also in progress at the Wabush Iron Company, in which Acme Metals has an ownership interest. The Wabush operation supplies approximately two-thirds of the Acme Steel ompany's iron ore requirements.
 ``We're hopeful that Wabush and its employees will reach a settlement. However, if operations are interrupted, we believe there are adequate iron ore supplies oan the spot market to meet all of Acme Steel's needs,'' Marsden pointed out.
 Marsden also commented that Acme Metals continues to move toward a decision on its study to install a $300,000,000 continuous thin slab caster/hot strip mill complex at its Acme Steel Company's Riverdale plant.
 ``As we've previously reported, if the project is approved, there will be a provision to record estimated costs related to the associated restructuring of operations, and a one-time, non-cash charge to write down those assets which will be replaced because of the new technology. We now estimate that the total of the two charges will be approximately $10,000,000-$15,000,000,'' he added.
 Acme Metals Incorproated, through its operating subsidiaries, is a fully integrated producer of steel, steel strapping and strapping tools, welded steel pipe and tube, and automotive and light truck jacks. Its common stock is traded on NASDAQ's National Market system with the symbol ACME.
 ACME METALS INCORPORATED
 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
 FOR THE THREE AND SIX MONTHS ENDED JUNE 27, 1993 and JUNE 28, 1992
 (in thousands except per share data)
 Second Quarter Six Months
 1993 1992 1993 1992
 Net sales $117,169 $ 99,993 $ 225,032 $ 198,515
 Cost of products sold 105,499 94,096 205,844 184,651
 Gross profit 11,670 5,897 19,188 13,864
 Selling and administrative
 expense 7,071 7,259 13,800 14,408
 Operating income 4,599 (1,362) 5,388 (544)
 Interest expense (1,350) (1,388) (2,734) (2,775)
 Interest income 373 338 741 983
 Other-net (195) 367 222 575
 Income (loss) before
 income taxes & cumula-
 tive effect of changes
 in acounting principles 3,427 (2,045) 3,617 (1,761)
 Income tax provision
 (credit) 1,371 (757) 1,447 (652)
 Income (loss) before
 cumulative effect of
 changes in accounting
 principles 2,056 (1,288) 2,170 (1,109)
 Cumulative effect of
 changes in accounting
 principle, net of taxes (50,323)
 Net income (loss) $ 2,056 $(1,288) $ 2,170 $ (51,432)
 PER COMMON SHARE:
 Income before cumulative
 effect of changes in
 accounting principles $0.38 $(0.24) $0.40 $(0.21)
 Cumulative effect of
 changes in accounting
 principles, net of taxes (9.32)
 Net income (loss) $0.38 $(0.24) $0.40 ($9.53)
 Note: Per share amounts for 1993 and 1992 are based on the weighted averrage number of common and dilutive common equivalent shares outstanding during the six-month period (5,409,761 in 1993 and 5,403,713 in 1992).
 ACME METALS INCORPORATED
 UNAUDITED CONSOLIDATED BALANCE SHEETS
 JUNE 27, 1993 and DEC. 27, 1992 (IN THOUSANDS)
 ASSETS 1993 1992
 Current assets $ 161,419 $ 148,860
 Investments and other assets 31,478 31,153
 Property, plant and equipment, net 117,162 120,689
 Total assets $ 310,059 $ 300,702
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities $ 64,110 $ 59,425
 Long-term debt 56,000 56,000
 Other long-term liabilities 15,691 15,023
 Postretirement benefits other than
 pensions 82,568 80,959
 Shareholders' equity 91,690 89,295
 Total liabilities and
 shareholders' equity $ 310,059 $ 300,702
 ACME METALS INCORPORATED
 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
 For The Six Months Ended June 27, 1993 and June 28, 1992
 (in thousands)
 1993 1992
 Net cash provided by operating
 activities $10,025 $ 9,718
 Capital expenditures (4,305) (2,187)
 Net cash used for investing
 activities (4,305) (2,187)
 Payment of long-term debt (3,500) 0
 Purchasae of common stock for treasury 0 (79)
 Other (20) (42)
 Net cash used for financing
 activities (3,520) 0
 Net increase (decrease) in cash and
 cash equivalents 2,200 7,410
 Cash and cash equivalents at
 beginning of period 49,224 31,734
 Cash and cash equivalents at
 end of period $51,424 $39,144
 -0- 7/22/93
 /CONTACT: Charles A. Nekvasil, director of public and investor relations, Acme Metals, 708-841-8383, ext. 2266.
 (ACME)


CO: Acme Metals Incorporated ST: Illinois IN: MNG SU: ERN

DH -- NY098 -- 4781 07/22/93 16:48 EDT
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