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GENEVA STEEL ANNOUNCES QUARTERLY RESULTS

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


(NYSE, PSE: GNV) announced today a net loss of $1.98 million or a $1.13 loss per common share for the third fiscal quarter ended June 30, 1992. This compares with net income of $5.02 million or $.33 per common share for the same quarter of the previous fiscal year. For the nine months ended June 30, 1992, the company reported a net loss of $9.77 million or a $.65 loss per common share. This compares with net income of $16.18 million or $1.08 per common share during the nine months ended June 30, 1991. Operating income for the third fiscal quarter was $.33 million.
 Sales and tons shipped were $113.53 million and 356,000 tons, respectively, compared with $106.57 million and 303,000 tons, respectively, for the same quarter last year.
 "The third quarter net loss of $1.98 million represents continued improvement over the first and second fiscal quarter net losses of $4.81 million and $2.98 million, respectively," said Robert J. Grow, president and chief operating officer. "Similarly, after adjusting for depreciation and amortization, the company generated $5.70 million in positive cash flow from its manufacturing operations during the quarter as compared to $(.22) million and $3.37 million for the first and second quarters, respectively.
 "The positive trend is primarily a result of continued cost improvements and increased shipments during the third quarter. Steel pricing, however, remains depressed, due in part to subsidized and dumped steel imports," said Grow.
 During the quarter, the company phased in its large coil/direct rolling project. The project included installation of a coilbox, large coil handling facilities, and an in-line slab conditioning facility. Nearly all of the slabs produced by the company are now processed through the slab conditioning facility and approximately 80 percent of the company's coil is directly rolled from steel ingots without undergoing the traditional cooling and reheating steps. The company anticipates that the project will result in yield, energy and other cost savings. The ability to produce larger coils also provides the company access to new markets.
 In light of continued weak steel prices and sluggish demand, the company continues to defer expenditures for various modernization projects, including its continuous casting facility, except for portions of projects for which commitments have already been made. The company is also moving forward on certain environmental improvements and various capital maintenance projects. The timing of completion of the caster and other modernization projects is dependent on the company's future operating results and its ability to obtain additional capital. The company estimates that the caster could be completed within approximately 12-15 months upon resumption of full activity.
 The company previously announced that it was considering additional borrowings (subject to obtaining lender waivers as required) and/or equity financing to complete its modernization program. The company continues to monitor market conditions and assess various possibilities but has presently determined that it will not pursue additional financing until it deems conditions to be more favorable. "In the near term our focus will continue to be on cost cutting, revenue enhancement, and cash flow management, which we anticipate will allow the company adequate liquidity to fund ongoing operations and currently planned capital expenditures," said Grow.
 In addition to the anticipated cost and marketing benefits of the large coil/direct rolling project, the company is taking other cost cutting measures. In June the company instituted labor cost reductions of approximately 10 percent through layoffs, overtime reductions and redistribution of work assignments. The company is also undertaking aggressive measures to further reduce selling, general and administrative expenses. Furthermore, the company recently implemented changes to its Q-BOP operation to significantly increase scrap melting capability.
 As previously announced, in April the company renegotiated payment terms with a major customer, which has enhanced cash flow through acceleration of receivables and when fully phased in is expected to provide significant additional working capital. The company also continues to effect previously announced inventory reductions 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.
 As of June 30, 1992, the company had $6.8 million in borrowings under its $50 million revolving line of credit from a syndicate of banks led by Citicorp USA, Inc. Certain financial tests contained in the company's senior and subordinated debt and in the line of credit limit the availability of borrowings under the line of credit or otherwise to a total of $20 million. The company is seeking the consent of its senior and subordinated debt holders to incur borrowings in excess of $20 million under the line of credit and to incur additional debt in connection with future financings. Borrowings under the line of credit in excess of $20 million would remain subject to financial covenants and tests.
 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
 (Unaudited -- In thousands, except per share data)
 Periods ended Three Months Nine Months
 June 30 1992 1991 1992 1991
 Net sales $113,526 $106,570 $318,636 $347,711
 Cost of sales 107,934 93,765 307,980 303,009
 Gross margin 5,592 12,805 10,656 44,702
 Selling, general &
 administrative exps. 5,266 4,848 17,371 16,178
 Inc. (loss) from opers. 326 7,957 (6,715) 28,524
 Other income (expense):
 Interest & other income 131 465 787 2,859
 Interest expense (3,703) (377) (10,095) (5,306)
 Total (3,572) 88 (9,308) (2,447)
 Inc. (loss) bef. provision
 (benefit) for inc. taxes (3,246) 8,045 (16,023) 26,077
 Provision (benefit) for
 income taxes (1,266) 3,025 (6,257) 9,895
 Net income (loss) $ (1,980) $ 5,020 $ (9,766) $ 16,182
 Net income (loss) per
 common share $(.13) $.33 $(.65) $1.08
 Weighted average shares
 outstanding 15,033 15,052 15,017 14,999
 Steel tons shipped 356 303 1,002 975
 Capital expenditures $ 12,821 $ 40,665 $ 56,956 $ 83,392
 Depreciation expense $ 4,785 $ 3,159 $ 12,821 $ 9,030
 GENEVA STEEL
 Summary Balance Sheet Information
 (Unaudited -- Dollars in thousands)
 6/30/92 9/30/91
 Cash & marketable securities $ -- $ 45,597
 Current assets 125,407 165,896
 Property, plant & equipment (net) 248,226 204,150
 Total assets 378,908 375,888
 Current liabilities 63,096 59,970
 Long-term debt 166,823 160,000
 Total liabilities 233,751 221,472
 Total stockholders' equity $145,157 $154,416
 -0- 7/30/92
 /CONTACT: Dennis Wanlass of Geneva Steel, 801-227-9302/
 (GNV) CO: Geneva Steel ST: Utah IN: MNG SU: ERN


GK-PS -- NY059 -- 5126 07/30/92 13:14 EDT
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