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WEIRTON STEEL ISSUES EARNINGS

 WEIRTON, W.Va., July 20 /PRNewswire/ -- Weirton Steel Corporation (NYSE: WS) reported improved operating results for the quarter and six months ended June 30, 1993.
 Excluding a noncash charge of $4.1 million for retiree health care benefits, the company earned an operating profit of $3.5 million for the second quarter compared to a loss of $.8 million in the same quarter a year ago.
 Shipments in the second quarter improved significantly to 623,800 tons, nearly 25 percent higher compared to last year's second quarter. As a result, revenues for the quarter, although adversely affected by lower selling prices and a change in customer mix, increased 12.7 percent to $301.3 million.
 Gross margins were favorably enhanced by operating costs 10 percent lower than a year ago reflecting greater yields and general operating performance improvement stemming from the company's recent modernization program and Total Quality Management efforts, which more than offset higher energy, labor and retiree health care costs.
 Higher depreciation and financing costs, combined with the noncash portion of retiree health care benefits, resulted in the company reporting a net loss of $11.4 million or $0.46 per share of common stock for the second quarter compared to a net loss of $9.7 million or $0.43 per share for the same quarter a year ago.
 For the first half of 1993, the net loss was $223.3 million or $8.47 per share. The loss includes the effect of accounting changes recognized in the first quarter related to retiree health care benefits, postemployment benefits and income taxes. Also included in the first quarter were restructuring and extraordinary charges. Excluding the effect of the accounting changes and restructuring charge, the company reported an operating profit of $6.5 million for the first six months of 1993 compared to $.9 million operating loss for the same period a year ago. Sales for the first six months ended June 30 were $599.1 million, an increase of 11.6 percent from $536.8 million in the prior year period. Shipments of 1,232,000 tons increased 20.6 percent over the 1,021,700 tons shipped in 1992's first half.
 The improved operating performance, combined with lower expenditures for equipment, more than offset higher financing requirements, and the company ended the second quarter with cash and equivalents of approximately $102.3 million compared to $61.2 million on hand at year-end 1992.
 Sheet products shipments continue to improve, reflecting a general strengthening of economic activity in this sector; and combined with import duties now in effect, sheet product pricing began to show some improvement late in the second quarter. Tin Mill product shipments decreased slightly with revenue lower in the second quarter due to lower selling prices and a temporary shift in product and customer mix.
 "We continue to see improvement in our operating performance throughout the mill, reflecting the benefits of our equipment modernization. We expect further sheet product price increases in the third quarter with good demand continuing and improvement in the recent Tin Mill product performance. Price realization could be further enhanced if the International Trade Commission finds damage to the domestic steel industry resulted from foreign steel dumping and subsidization, and duties are finally imposed on unfairly priced imported steel," stated Herbert Elish, chairman and president.
 Weirton Steel operates an integrated flat-rolled steel producing plant in Weirton.
 WEIRTON STEEL CORPORATION
 Condensed Statements of Income
 (Dollars in thousands, except per share data)
 (Unaudited)
 Quarter Ended June 30 1993 1992
 Net sales $301,341 $267,303
 Operating costs:
 Cost of sales 280,403(A) 250,335
 Selling, general and administrative exp. 8,376 7,749
 Depreciation 13,224 10,035
 Restructuring charge -- --
 Total Operating Costs 302,003 268,119
 Income (loss) from operations (662) (816)
 Other income (expense):
 Interest expense (13,280) (9,161)
 Interest income 549 932
 Net other income (expense) (12,731) (8,229)
 Loss before ESOP contribution (13,393) (9,045)
 ESOP contribution 652 652
 Loss before income taxes (14,045) (9,697)
 Income tax benefit 2,669 --
 Loss before extraordinary item (11,376) (9,697)
 Extraordinary item - loss on early
 extinguishment of debt -- --
 Loss before cumulative effect of
 accounting changes (11,376) (9,697)
 Cumulative effect on prior years of
 accounting changes -- --
 Net loss (11,376) (9,697)
 Less: preferred stock dividend requirement 781 781
 Net loss applicable to common shares (12,157) (10,478)
 Per share data:
 Weighted average number of common shares
 and equivalents 26,578 24,366
 Loss per common share before
 extraordinary item $(0.46) $(0.43)
 Extraordinary item -- --
 Loss per common share before cumulative
 effect on prior years of accounting
 changes $(0.46) $(0.43)
 Cumulative effect of accounting changes -- --
 Net loss per common share $(0.46) $(0.43)
 1993
 Before
 Six Months Ended June 30 Adj. Adjustments 1993 1992
 Net sales $599,059 -- $599,059 $536,801
 Operating costs:
 Cost of sales 552,026 8,250(B) 560,276 502,396
 Selling, general and
 administrative exp. 16,160 -- 16,160 15,218
 Depreciation 24,398 -- 24,398 20,070
 Restructuring charge -- 17,340 17,340 --
 Total operating costs 592,584 25,590 618,174 537,684
 Income (loss) from
 operations 6,475 (25,590) (19,115) (883)
 Other income (expense):
 Interest expense (26,262) -- (26,262) (18,580)
 Interest income 1,127 -- 1,127 1,999
 Net other income
 (expense) (25,135) -- (25,135) (16,581)
 Loss before ESOP
 contribution (18,660) (25,590) (44,250) (17,464)
 ESOP contribution 1,305 -- 1,305 1,305
 Loss before income taxes (19,965) (25,590) (45,555) (18,769)
 Income tax benefit -- 8,656 8,656 --
 Loss before extraordinary
 item (19,965) (16,934) (36,899) (18,769)
 Extraordinary item - loss
 on early extinguishment
 of debt -- (6,549) (6,549) --
 Loss before cumulative effect
 of accounting changes (19,965) (23,483) (43,448) (18,769)
 Cumulative effect on prior
 years of accounting changes -- (179,803)(C)(179,803) 4,356
 Net loss (19,965) (203,286) (223,251) (14,413)
 Less: preferred stock
 dividend requirement 1,562 -- 1,562 1,562
 Net loss applicable to
 common shares (21,527) (203,286) (224,813) (15,975)
 Per share data:
 Weighted average number of
 common shares and
 equivalents -- -- 26,529 24,315
 Loss per common share before
 extraordinary item -- -- $(1.44) $(0.84)
 Extraordinary item -- -- $(0.25) --
 Loss per common share before
 cumulative effect on prior
 years of accounting changes -- -- $(1.69) $(0.84)
 Cumulative effect of
 accounting changes -- -- $(6.78) $(0.18)
 Net loss per common share -- -- $(8.47) $(0.66)
 (A) Includes $4.1 million noncash portion of SFAS No. 106 expense
 (B) Noncash portion of SFAS No. 106 expense
 (C) Cumulative effect of adopting SFAS No.'s 106, 109 and 112
 -0- 7/20/93
 /CONTACT: Richard W. Garan, director, media and investor relations, 304-797-2728/
 (WS)


CO: Weirton Steel Corporation ST: West Virginia IN: MNG SU: ERN

DM-KC -- PG017 -- 3664 07/20/93 18:45 EDT
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Date:Jul 20, 1993
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