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GENEVA STEEL REPORTS FIRST QUARTER 1993 RESULTS

 VINEYARD, Utah, Feb. 4 /PRNewswire/ -- Geneva Steel (NYSE, PSE: GNV) reported today a net loss of $3.9 million or a $.26 loss per common share for the first fiscal quarter ended Dec. 31, 1992. This compares with a net loss of $4.8 million or a $.32 loss per common share for the same quarter of the previous fiscal year. The operating loss for the first quarter was $3.0 million, which compares with an operating loss of $5.5 million during the same period last year. After adjusting for depreciation and amortization, the company generated $2.2 million in positive cash flow from its manufacturing operations during the first quarter.
 Sales and shipments during the quarter were approximately $101.1 million and 337,000 tons, respectively, compared with $97.2 million and 308,000 tons, respectively, for the same quarter last year.
 The increased sales from higher shipments in the first fiscal quarter of 1993 as compared to the same quarter of the previous year were offset in part by lower average selling prices. The decline in price realization offset considerable cost improvements in the first fiscal quarter of 1993 compared with the same quarter of the previous year. Cost per ton declined primarily as a result of cost savings associated with the company's new Q-BOP steelmaking facility and the direct rolling of certain products, an increase in production, and a shift in product mix to lower cost products. In addition, costs in the first quarter of the previous fiscal year included nonrecurring transition costs associated with integrating new equipment. Also, approximately $.6 million of the net loss for the first fiscal quarter of 1992 resulted from a write-off of loan fees.
 Price realization for the company's products also declined in the first fiscal quarter of 1993 as compared with the immediately preceding quarter. "The decline in price realization between the fourth fiscal quarter of 1992 and the first fiscal quarter of 1993 was attributable primarily to a shift in sales volume from the western U.S. market to the midwestern and eastern markets, where the company generally experiences lower price realization," said Joseph A. Cannon, chairman and chief executive officer.
 In recent weeks, the company has experienced significant increases in its order levels, including in the western market. In January 1993, the company received orders of approximately 194,235 tons as compared to approximately 92,737 tons during January 1992. The company is hopeful that the higher order levels, together with the recent announcement of preliminary anti-dumping margins in the U.S. trade cases, will improve its price realization.
 On Jan. 13, 1993, the company announced increases in transaction prices of $10 per ton for carbon and high-strength low alloy plates, $20 per ton for hot-rolled sheet and band products, and $20 per ton for strip mill plate products. The company is evaluating possible additional price increases. Geneva intends to honor prior price agreements. Notwithstanding the announced price increases, the company will continue to meet competitive prices as market conditions require.
 Also during January, the company announced a financing plan intended primarily for completion of its continuous casting facility. The company is proceeding with efforts to complete the financing plan.
 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)
 Three months ended Dec. 31 1992 1991
 Net sales $101,149 $ 97,231
 Cost of sales 99,468 96,280
 Gross margin 1,681 951
 Selling, general and admin. expenses 4,635 6,410
 Loss from operations (2,954) (5,459)
 Other income (expense):
 Interest and other income 70 489
 Interest expense (3,570) (2,923)
 Total (3,500) (2,434)
 Loss before benefit for income taxes (6,454) (7,893)
 Benefit for income taxes (2,517) (3,086)
 Net loss $ (3,937) $ (4,807)
 Net loss per common share $(.26) $(.32)
 Weighted average shares outstanding 15,036 14,994
 Steel tons shipped 337 308
 Capital expenditures $ 10,356 $ 24,550
 Depreciation expense $ 5,115 $ 3,567
 GENEVA STEEL
 Summary Balance Sheet Information
 (Unaudited)
 (Dollars in thousands)
 12/31/92 9/30/92
 Cash and cash equivalents $ -- $ 3,122
 Current assets 129,777 132,701
 Property, plant and equipment (net) 258,037 252,797
 Total assets 392,543 390,462
 Current liabilities 68,975 57,047
 Long-term debt 169,524 178,182
 Total liabilities 254,534 248,630
 Total stockholders' equity $138,009 $141,832
 -0- 2/4/93
 /CONTACT: Dennis Wanlass of Geneva Steel, 801-227-9302/
 (GNV)


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

GK-WB -- NY089 -- 3047 02/04/93 13:52 EST
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Date:Feb 4, 1993
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