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GENEVA STEEL REPORTS QUARTERLY RESULTS

 VINEYARD, Utah, Jan. 13 /PRNewswire/ -- Geneva Steel (NYSE: GNV; PSE) reported today net income of $1.71 million for the fiscal quarter ended Dec. 31, 1993. After accounting for dividends on preferred stock, the Company had net income applicable to common shares of $.03 million, or $.002 per common share. This compares with a net lose of $3.94 million, or $.26 per common share, during the same quarter last year. Operating income for the quarter was $5.79 million compared with an operating loss of $2.95 million during the same quarter last year.
 Sales and tons shipped during the quarter were $127.1 million and 386,000 tons, respectively, compared with $101.15 million and 337,000 tons, respectively, during the same quarter last year.
 "Average price realization increased during the quarter, contributing to the Company's improved performance," said Joseph A. Cannon, chairman and chief executive officer. Weighted average sales prices for sheet, plate and pipe products increased by 19%, 7% and 2%, respectively, as compared to the same quarter last year. The Company's current order backlog is approximately 260,000 tons. The benefit of increased price realization was partially offset by increased costs resulting from production disruptions associated primarily with the continuous caster and wide plate coiler projects and a blast furnace equipment failure, as well as by other increased operating costs.
 The Company expects to complete construction of its continuous casting facility in March 1994 followed by a start-up period of approximately six months. "We expect significant operating cost reductions and throughput improvements from the continuous caster," said Robert J. Grow, president and chief operating officer.
 As previously announced, the Company has filed a registration statement with the Securities and Exchange Commission in connection with a proposed $125 million offering of senior notes due 2004. The expected net proceeds of the offering will be used primarily to prepay an aggregate of $90 million principal amount of privately placed senior and subordinated debt. The Company is proceeding with the offering and anticipates completing the transaction by early February. There can be no assurance, however, regarding consummation of the offering.
 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
 1993 1992
 Net sales $127,099 $101,149
 Cost of sales 115,626 99,468
 Gross margin 11,473 1,681
 Selling, general and administrative expenses 5,682 4,635
 Income (loss) from operations 5,791 (2,954)
 Other Income (expense):
 Interest and other income 433 70
 Interest expense (3,472) (3,570)
 Total (3,039) (3,500)
 Income (loss) before provision (benefit)
 for income taxes 2,752 (6,454)
 Provision (benefit) for income taxes 1,042 (2,517)
 Net income (loss) 1,710 (3,937)
 Less redeemable preferred stock dividends and
 accretion for original issue discount 1,679 --
 Net income (loss) applicable to common shares 31 (3,937)
 Net income (loss) per common share .002 (.26)
 Weighted average shares outstanding 15,095 15,036
 Steel tons shipped 386 337
 Capital expenditures 46,583 10,356
 Depreciation expense 5,641 5,115
 SUMMARY BALANCE SHEET INFORMATION
 (Unaudited)
 (Dollars in thousands)
 Dec. 31, Sept. 30,
 1993 1993
 Cash and cash equivalents $ 16,130 64,267
 Current assets 144,590 175,180
 Property, plant and equipment (net) 355,531 314,590
 Total assets 508,336 498,384
 Current liabilities 88,152 86,013
 Long-term debt 224,991 224,991
 Total liabilities 334,671 326,623
 Redeemable preferred stock 37,665 35,986
 Total stockholders' equity 136,000 135,775
 -0- 1/13/94
 /CONTACT: Dennis Waniass of Geneva Steel, 801-227-9302/
 (GNV)


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

LG-SP -- NY018 -- 1723 01/13/94 09:43 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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