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GENEVA STEEL REPORTS YEAR-END RESULTS

              GENEVA STEEL REPORTS YEAR-END RESULTS
    VINEYARD, Utah, Dec. 4 /PRNewswire/ -- Geneva Steel (NYSE: GNV)


reported net income of $1.4 million, or $.09 per common share, for the fourth quarter ended Sept. 30, 1991. This compares with net income of $9.1 million, or $.61 per common share, for the same quarter of the previous fiscal year.
    Sales and tons shipped for the period were $98.3 million and approximately 299,000 tons, respectively, compared with $127.9 million and approximately 354,000 tons, respectively, for the same period last year.
    For the 1991 fiscal year, Geneva reported net income of $17.6 million, or $1.17 per common share, on sales of $446 million.  This compares with net income of $38.2 million, or $2.86 per common share, on sales of $507.3 million during the previous fiscal year.
    "Geneva's performance this year is reflective of the continuing recession and its impact on the steel industry," said Geneva President Robert J. Grow.  "Pricing and demand in the hot-rolled sheet market declined significantly in the fall of 1990, with demand and pricing in the pipe and plate markets declining in mid-1991 as the recession continued," Grow said.
    "Furthermore, costs associated with the startup of the coilbox and the transition from open hearth to Q-BOP steelmaking are adversely affecting short-term performance.  These growing pains are the short- term price we pay for long-term competitiveness as we move into 21st century steelmaking.  The recently completed Q-BOP is now on-line and operating well, although transition costs are still being incurred," said Grow.
    Net income for the fourth quarter was affected by certain non- recurring expenses, including modernization transition costs, offset, in part, by non-recurring items which favorably affected income by $950,000.  Until the market improves, such transition costs are eliminated, the cost benefits of completed modernization projects are realized and/or costs are otherwise reduced, near-term losses may be incurred.
    As of Nov. 30, 1991, the company has approximately $31 million in cash and cash equivalents and no outstanding borrowings under its $50 million revolving credit facility of otherwise secured by its $100 million inventory and accounts receivable collateral base. Nevertheless, Geneva's lower earnings affect the ability of the company to borrow in the future under its revolving credit facility for scheduled modernization expenditures.  Consequently, Geneva is working to modify its existing debt arrangements, access alternative sources of funds, cut costs and improve operating results.  Geneva's modernization has been planned from the outset to be flexible and the timing of certain capital expenditures may be deferred as circumstances require.
    Despite current economic conditions, Grow is upbeat about the company's accomplishments to date.  For example, Geneva earned a profit during one of the worst 12-month periods for the steel industry since the early 1980s.  In addition, Geneva has successfully completed the construction and startup of a first-of-its-kind biological wastewater treatment plant, the world's largest coilbox, a benzene reduction project and, most recently, a world-class Q-BOP steelmaking facility. "The Geneva team now has a demonstrated track record of successfully designing, building and implementing new, high-tech production facilities and equipment," 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)
      Periods ended                 Three months            Year
      Sept. 30                    1991       1990      1991      1990
    Net sales                   $98,270   $127,905  $445,981  $507,297
    Cost of sales                90,171    106,056   393,180   409,680
    Gross margin                  8,099     21,849    52,801    97,617
    S,G&A expenses                5,703      6,758    21,881    28,953
    Income from operations        2,396     15,091    30,920    68,664
    Other income (expense):
     Interest and other income      605      2,177     3,464     4,194
     Interest expense              (859)    (2,391)   (6,165)  (10,171)
     Total                         (254)      (214)   (2,701)   (5,977)
    Income before provision
     for income taxes             2,142     14,877    28,219    62,687
    Provision for income taxes      770      5,803    10,665    24,448
    Net income                    1,372      9,074    17,554    38,239
    Net income per common share    $.09       $.61     $1.17     $2.86
    Weighted average
     shares outstanding          15,104     14,993    15,034    13,366
    Steel tons shipped              299        354     1,274     1,375
    Capital expenditures        $30,015    $22,531  $113,410   $56,219
    Depreciation expense          2,904      2,571    11,935     8,942
                      Summary Balance Sheet Information
                      (Dollars in thousands; unaudited)
      Sept. 30                                  1991      1990
    Cash and marketable securities           $45,597   $62,882
    Current assets                           165,896   198,363
    Property, plant and equipment (net)      204,150   102,677
    Total assets                             375,888   308,402
    Current liabilities                       59,970    64,341
    Long-term debt                           160,000   110,553
    Total liabilities                        221,472   174,894
    Total stockholders' equity               154,416   133,508
    -0-       12/4/91
    /CONTACT:  Dennis Wanlass of Geneva Steel, 801-227-9302/
    (GNV) CO:  Geneva Steel ST:  Utah IN:  MNG SU:  ERN CK-SM -- NY057 -- 9253 12/04/91 13:41 EST
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Date:Dec 4, 1991
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