ALJ Announces 1st Quarter Earnings for Kentucky Electric
02/14/2008 - ALJ, the parent of Kentucky Electric Steel, posts net income of $4,965,246 for the three months ended December 31, 2007, a strong improvement over the net loss of $395,420 reported for the three months ended December 31, 2006.
ALJ, the parent of Kentucky Electric Steel, posted net income of $4,965,246 for the three months ended December 31, 2007. This compares to a net loss of $395,420 for the three months ended December 31, 2006.
“The fairly dramatic improvement in ALJ’s net income has three root causes,” said John Scheel, ALJ’s CEO: “A near-doubling of operating profit due to strong performance at KES, a twenty percent (20%) decrease in interest payments resulting from last year’s debt restructuring, and the elimination of liabilities related to long-standing discontinued operations. Absent the latter, net income would have been about $2 million.”
The company had previously reported revenue of $37.4 million for the three months ended December 31, 2007, which compares to revenue of $35.4 million for the three months ended December 31, 2006.
ALJ is the parent company of KES Acquisition Co. doing business as Kentucky Electric Steel, the owner and operator of a steel minimill near Ashland, Ky.
The Kentucky Electric Steel minimill produces steel bar flats as both merchant bar quality flats (MBQ Bar Flats) and special bar quality flats (SBQ Bar Flats). Its more-than-2600 different Bar Flat items are sold to the leaf-spring suspension market for light and heavy-duty trucks, mini-vans and utility vehicles, cold drawn bar converters, certain specialty applications for steel service centers, truck trailer manufacturers and other miscellaneous markets. Kentucky Electric’s operations are tailored for the manufacture of wider and thicker bar flats (up to three inches in thickness and twelve inches in width) that are required by these markets.
