Weirton Steel Corporation First Quarter 2001 Results

Apr 26, 2001, 01:00 ET from Weirton Steel Corp.

    WEIRTON, W.Va., April 26 /PRNewswire/ -- Weirton Steel Corporation
 (NYSE:   WS) today reported a net loss of $75.3 million, or $1.81 per diluted
 share in the first quarter of 2001.  During the quarter, the Company recorded
 a $12.3 million restructuring charge associated with an involuntary reduction
 program for exempt employees. The write-off of the Company's remaining
 interests in certain joint ventures, primarily GalvPro LP totaled
 approximately $18.1 million.  Excluding the effects of these items, the
 Company would have reported a net loss of $44.9 million or $1.08 per diluted
 share.  This compares with net income of $0.7 million, or $0.02 per diluted
 share in the first quarter of 2000. Net sales in the first quarter of 2001
 were $252.2 million on shipments of 587,100 tons, compared to $329.8 million
 on 740,400 tons of shipments for the same period in 2000.
     At March 31, 2001, their liquidity, comprising of cash, cash equivalents
 and funds available under the Company's financing facilities totaled
 approximately $105 million.
     The first quarter was affected by the residual effect of unfairly priced
 imports, the slowing domestic economy, and continued high energy costs.  "The
 import crisis has driven down selling prices to their lowest levels in
 decades," stated John H. Walker, President and CEO.  "We are pleased with the
 recently announced preliminary findings of the U. S. Commerce Department
 covering hot-rolled carbon steel imports confirming the damage done to our
 markets. We continue to encourage President Bush to initiate a Section 201
 investigation, which would reduce imports and enable the domestic steel
 industry to get back on its feet.  Looking forward we expect shipment levels
 to improve modestly in the second quarter as market conditions remain
 difficult," added Walker.
 
     Any statement contained in this release, other than historical
 information, is forward-looking.  A variety of factors could cause business
 conditions and the Company's actual results and experience to differ
 materially from those expected by the Company or expressed in the Company's
 forward-looking statements.  Additional information concerning these factors
 is available in the Company's most recent Annual Report and filings with the
 Securities and Exchange Commission.
     Weirton Steel operates an integrated flat rolled steel producing plant in
 Weirton, WV.
 
                           WEIRTON STEEL CORPORATION
             UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                 (Dollars in thousands, except per share data)
 
 
                                                       Three Months Ended
                                                           March 3l,
 
                                                       2001          2000
 
     NET SALES                                       $252,150       $329,758
     OPERATING COSTS:
      Cost of sales                                   263,450        292,658
      Selling, general and
       administrative expenses                          8,330          8,694
      Depreciation                                     16,311         16,544
      Restructuring charge                             12,338              -
      Profit sharing                                        -            355
        Total operating costs                         300,429        318,251
 
     INCOME (LOSS) FROM OPERATIONS                    (48,279)        11,507
       Loss from unconsolidated subsidiaries          (18,074)        (3,672)
       Interest expense                                (9,349)        (8,672)
       Other income net                                   408          1,738
 
     INCOME (LOSS) BEFORE INCOME TAXES                (75,294)           901
       Income tax provision                                 -            189
 
     NET INCOME (LOSS)                               $(75,294)          $712
 
     PER SHARE DATA:
     Weighted average number of common
      shares (in thousands):
        Basic                                          41,570         43,263
        Diluted                                        41,570         44,620
 
     NET INCOME (LOSS) PER SHARE:
        Basic                                         $(1.81)          $0.02
        Diluted                                       $(1.81)          $0.02
 
     NET SHIPMENTS IN TONS                            587,100        740,400
 
                                www.weirton.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X79041347
 
 

SOURCE Weirton Steel Corp.
    WEIRTON, W.Va., April 26 /PRNewswire/ -- Weirton Steel Corporation
 (NYSE:   WS) today reported a net loss of $75.3 million, or $1.81 per diluted
 share in the first quarter of 2001.  During the quarter, the Company recorded
 a $12.3 million restructuring charge associated with an involuntary reduction
 program for exempt employees. The write-off of the Company's remaining
 interests in certain joint ventures, primarily GalvPro LP totaled
 approximately $18.1 million.  Excluding the effects of these items, the
 Company would have reported a net loss of $44.9 million or $1.08 per diluted
 share.  This compares with net income of $0.7 million, or $0.02 per diluted
 share in the first quarter of 2000. Net sales in the first quarter of 2001
 were $252.2 million on shipments of 587,100 tons, compared to $329.8 million
 on 740,400 tons of shipments for the same period in 2000.
     At March 31, 2001, their liquidity, comprising of cash, cash equivalents
 and funds available under the Company's financing facilities totaled
 approximately $105 million.
     The first quarter was affected by the residual effect of unfairly priced
 imports, the slowing domestic economy, and continued high energy costs.  "The
 import crisis has driven down selling prices to their lowest levels in
 decades," stated John H. Walker, President and CEO.  "We are pleased with the
 recently announced preliminary findings of the U. S. Commerce Department
 covering hot-rolled carbon steel imports confirming the damage done to our
 markets. We continue to encourage President Bush to initiate a Section 201
 investigation, which would reduce imports and enable the domestic steel
 industry to get back on its feet.  Looking forward we expect shipment levels
 to improve modestly in the second quarter as market conditions remain
 difficult," added Walker.
 
     Any statement contained in this release, other than historical
 information, is forward-looking.  A variety of factors could cause business
 conditions and the Company's actual results and experience to differ
 materially from those expected by the Company or expressed in the Company's
 forward-looking statements.  Additional information concerning these factors
 is available in the Company's most recent Annual Report and filings with the
 Securities and Exchange Commission.
     Weirton Steel operates an integrated flat rolled steel producing plant in
 Weirton, WV.
 
                           WEIRTON STEEL CORPORATION
             UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                 (Dollars in thousands, except per share data)
 
 
                                                       Three Months Ended
                                                           March 3l,
 
                                                       2001          2000
 
     NET SALES                                       $252,150       $329,758
     OPERATING COSTS:
      Cost of sales                                   263,450        292,658
      Selling, general and
       administrative expenses                          8,330          8,694
      Depreciation                                     16,311         16,544
      Restructuring charge                             12,338              -
      Profit sharing                                        -            355
        Total operating costs                         300,429        318,251
 
     INCOME (LOSS) FROM OPERATIONS                    (48,279)        11,507
       Loss from unconsolidated subsidiaries          (18,074)        (3,672)
       Interest expense                                (9,349)        (8,672)
       Other income net                                   408          1,738
 
     INCOME (LOSS) BEFORE INCOME TAXES                (75,294)           901
       Income tax provision                                 -            189
 
     NET INCOME (LOSS)                               $(75,294)          $712
 
     PER SHARE DATA:
     Weighted average number of common
      shares (in thousands):
        Basic                                          41,570         43,263
        Diluted                                        41,570         44,620
 
     NET INCOME (LOSS) PER SHARE:
        Basic                                         $(1.81)          $0.02
        Diluted                                       $(1.81)          $0.02
 
     NET SHIPMENTS IN TONS                            587,100        740,400
 
                                www.weirton.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X79041347
 
 SOURCE  Weirton Steel Corp.