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GENEVA STEEL REPORTS FIRST QUARTER RESULTS

 GENEVA STEEL REPORTS FIRST QUARTER RESULTS
 VINEYARD, Utah, Jan. 24 /PRNewswire / -- Geneva Steel (NYSE: GNV)


today reported a net loss of $4.8 million or $.32 loss per common share for the first quarter ended Dec. 31, 1991. This compares with net income of $7.1 million or $.47 per common share for the same quarter of the previous fiscal year. Approximately $700,000 of the net loss was attributable to a non-recurring charge related to loan fees written off in anticipation of replacing the company's current revolving credit facility.
 Sales and tons shipped were $97.2 million and 308,000 tons, respectively, compared with $126.5 million and 349,000 tons, respectively, for the same quarter last year.
 "A number of factors, including transition costs, lower shipments, lower prices and higher depreciation, contributed to the quarterly loss," said Geneva President Robert J. Grow. "During the quarter we experienced transition costs, including reduced production levels, associated with the start-up of new equipment and systems such as the company's coilbox and Q-BOP steelmaking facility. In addition, plate prices declined, while coil prices remained relatively stable," said Grow. Low steel prices during the recession have contributed to losses by all major domestic integrated steel producers.
 "We are aggressively pursuing measures aimed at returning the company to the black and enhancing our liquidity position," said Grow. "The company has made progress in eliminating transition costs, increasing production and achieving the cost savings associated with completed modernization projects. For a number of months, we have also had a company-wide cost reduction/revenue enhancement program underway which is beginning to show results. For example, we have already renegotiated several arrangements with certain vendors on more favorable terms," said Grow. In addition, the company is lowering its labor costs by reducing manning levels and overtime.
 In response to the continuing recession, the company is deferring expenditures for certain modernization projects, including its planned continuous casting facility. The company anticipates that this move will delay completion of the caster facility by approximately six months from its previous schedule, but expects to finish the large coil and direct rolling project this quarter. The company's modernization program is under continuous review, and the company may make further changes in the timing, design and spending for various modernization projects as circumstances require.
 As of Dec. 31, 1991, the company had approximately $19 million in cash and cash equivalents and no outstanding borrowing under its $50 million revolving credit facility or otherwise secured by its approximately $100 million inventory and accounts receivable collateral base. Geneva's recent operating results currently preclude borrowing under its revolving credit facility. Consequently, in addition to its efforts to cut costs and improve operating results, the company has received a proposal from and is working with Citibank to replace its revolving credit facility.
 In addition to announcing the company's quarterly results, Grow noted that on Dec. 7, 1991, the company shut down its open hearth steelmaking operation. "We are extraordinarily pleased with the two- month start-up of the Q-BOP facility, which has now produced more than 500,000 tons of liquid steel. We are experiencing productivity and yield improvements from operation of the new facility," Grow said.
 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)
 Three months ended Dec. 31 1991 1990
 Net sales $97,231 $126,460
 Cost of sales 96,280 108,514
 Gross margin 951 17,946
 Selling, general and
 administrative expenses 6,410 6,013
 Income (loss) from operations (5,459) 11,933
 Other income (expense):
 Interest and other income 489 2,149
 Interest expense (2,923) (2,690)
 (2,434) (541)
 Income (loss) before provision
 (benefit) for income taxes (7,893) 11,392
 Provision (benefit) for income taxes (3,086) 4,297
 Net income (loss) $(4,807) $7,095
 Net income (loss) per common share $(.32) $.47
 Weighted average shares outstanding 14,994 14,954
 Steel tons shipped 308 349
 Capital expenditures 24,550 15,968
 Depreciation expense 3,567 2,808
 SUMMARY BALANCE SHEET INFORMATION
 (Dollars in thousands - Unaudited)
 12/31/91 9/30/91
 Cash and marketable securities $18,984 $45,597
 Current assets 144,413 165,896
 Property, plant and equipment (net) 225,075 204,150
 Total assets 373,919 375,888
 Current liabilities 61,642 59,970
 Long-term debt 160,000 160,000
 Total liabilities 223,950 221,472
 Total stockholders' equity 149,969 154,416
 -0- 1/24/92
 /CONTACT: Dennis Wanlass of Geneva Steel, 801-227-9302/
 (GNV) CO: Geneva Steel ST: Utah IN: MNG SU: ERN


SM-KW -- NY073 -- 3258 01/24/92 16:28 EST
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Date:Jan 24, 1992
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/C O R R E C T I O N -- Geneva Steel/(Correction Notice)

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