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GENEVA STEEL ANNOUNCES QUARTERLY RESULTS

 GENEVA STEEL ANNOUNCES QUARTERLY RESULTS
 VINEYARD, Utah, April 30 /PRNewswire/ -- Geneva Steel


(NYSE, PSE: GNV) announced today a net loss of $2.98 million or a 20 cent loss per common share for the second fiscal quarter ended March 31, 1992. This compares with net income of $4.07 million or 27 cents per common share for the same quarter of the previous fiscal year and a net loss of $4.81 million or a 32 cents loss per common share for the first fiscal quarter ended Dec. 31, 1991. For the six months ended March 31, 1992, the company reported a net loss of $7.79 million or a 52 cents loss per common share. This compares with net income of $11.16 million or 75 cents per common share during the six months ended March 31, 1991. The company's operating loss for the second fiscal quarter of 1992 was $1.58 million compared with an operating loss of $5.46 million for the quarter ended Dec. 31, 1991. After adjusting for depreciation and amortization, the company generated $3.36 million in positive cash flow from its manufacturing operations during the second fiscal quarter.
 Sales and tons shipped were $108 million and 339,000 tons, respectively, compared with $115 million and 322,000 tons, respectively, for the same quarter last year.
 "Geneva's second quarter results reflect the fact that pricing for the company's products has not yet improved. Indeed, average price realization declined slightly as compared to the quarter ended Dec. 31, 1991," said Geneva President, Robert J. Grow. "There were, however, a number of bright spots during the quarter. First, the company's cost and production performance followed a favorable trend. January losses were down as compared to December, and March losses were lower than both January and February. Higher losses in February, as compared to January, were in large part associated with lower shipments and a reversing mill motor failure. Second, shipments during the quarter were up 10 percent as compared to the quarter ended Dec. 31, 1991. Third, the company's bookings remained near full production capacity," Grow said.
 The company established yesterday a new $50 million revolving line of credit with a syndicate of banks led by Citicorp USA, Inc., as agent, which will replace the company's previous line of credit. As of April 29, 1992, the company had $5.5 million in cash and cash equivalents and $8.0 million in line of credit borrowings which are secured by the company's approximately $100 million inventory and accounts receivable collateral base. Until the company's operating results sufficiently improve, certain financial tests contained in the company's senior and subordinated debt limit the availability of borrowings under the Citicorp line of credit or otherwise to a total of $20 million. The Citicorp line also contains certain financial tests that currently limit borrowing thereunder to $20 million.
 The company anticipates expending significant capital on modernization and capital maintenance projects during the remainder of the fiscal year. The company anticipates funding such expenditures from cash flow from operations; a recent renegotiation of the company's payment terms with a major customer, which will result in approximately an additional $12 million in working capital ($8 million of which was realized during the last week of April); inventory reductions through implementation of direct rolling and other inventory reduction programs, which are directed in large part at reducing raw materials inventory, semi-finished goods inventory and a steel scrap buildup associated with the start-up of the Q-BOP; cost cutting and revenue enhancement programs; and borrowings on the line of credit. The company is also assessing other means of obtaining additional capital, which may include additional borrowings (subject to obtaining lender waivers if required) and/or equity financing. The company is managing its capital requirements to maintain sufficient liquidity.
 The company continues to defer certain expenditures for various modernization projects, including its planned continuous casting facility, in light of the continuing recession. Nevertheless, the company has continued to complete some of its modernization projects and move forward on certain long lead time portions of others, including portions of the continuous casting facility. At the end of March 1992, it began operating a new in-line scarfing facility which uses oxygen to remove surface defects from steel slabs. Nearly 100 percent of the slabs produced by the company are now processed through the scarfing facility.
 Completion of the scarfing facility represents the final construction phase on the company's large coil/direct rolling project. The company is currently directly rolling approximately half of its coil from steel ingots without undergoing the traditional cooling and reheating steps. Direct rolling ingots and scarfing slabs in-line allow the company to produce steel coils of up to 52,000 pounds, more than double the size produced historically. Direct rolling and production of large coils yield considerable cost savings and provide access to new customers.
 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
 Statements of Income and Selected Financial Data
 (In thousands, except per share data -- Unaudited)
 Periods ended Three months Six months
 March 31 1992 1991 1992 1991
 Net sales $107,879 $114,681 $205,110 $241,141
 Cost of sales 103,766 100,730 200,046 209,244
 Gross margin 4,113 13,951 5,064 31,897
 S,G&A expenses 5,695 5,317 12,105 11,330
 Income (loss)
 from operations (1,582) 8,634 (7,041) 20,567
 Other Income (Expense)
 Interest and
 other income 167 245 656 2,394
 Interest expense (3,469) (2,239) (6,392) (4,929)
 Total (3,302) (1,994) (5,736) (2,535)
 Income (loss) before
 provision (benefit)
 for income taxes (4,884) 6,640 (12,777) 18,032
 Provision (benefit) for
 income taxes (1,905) 2,573 (4,991) 6,870
 Net income (loss) $(2,979) $4,067 $(7,786) 11,162
 Net income (loss) per
 common share $(.20) $.27 $(.52) $.75
 Weighted average share
 outstanding 15,025 14,994 15,009 14,965
 Steel tons shipped 339 322 647 672
 Capital expenditures 19,585 26,759 44,135 42,727
 Depreciation expense 4,470 3,063 8,037 5,871
 GENEVA STEEL
 Summary Balance Sheet Information
 (Dollars in thousands - Unaudited)
 3/31/92 3/30/91
 Cash and marketable securities $786 $45,597
 Current assets 127,620 165,896
 Property, plant and equipment (net) 240,190 204,150
 Total assets 372,208 375,888
 Current liabilities 55,514 59,970
 Long-term debt 167,000 160,000
 Total liabilities 225,071 221,472
 Total stockholders' equity 147,137 154,416
 -0- 4/30/92
 /CONTACT: Dennis Wanlass of Geneva Steel, 801-227-9302/
 (GNV) CO: Geneva Steel ST: Utah IN: MNG SU: ERN


TQ-MH -- NY051 -- 4924 04/30/92 12:18 EDT
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Date:Apr 30, 1992
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