ALJ Announces 2nd Quarter Earnings
05/18/2009 - ALJ, the parent company of Kentucky Electric Steel, reports a net loss of $130,684 on net sales of $66.4 million for the six months ended March 31, 2009.
ALJ, the parent company of Kentucky Electric Steel, reported a net loss of $130,684 on net sales of $66.4 million for the six months ended March 31, 2009.
The $130,684 net loss compares to net income of $6,802,835 for the six months ended March 31, 2008. The $66.4 million net sales compares to net sales of $82.3 million in the six months ended March 31, 2008.
“The first half of fiscal 2009 was extremely challenging,” noted John Scheel, ALJ’s Chief Executive Officer, “In the first quarter, we experienced the normal seasonal declines in both orders and shipments. In the second quarter, we experienced further declines in both orders and shipments due to the continuing poor economic conditions seen industry-wide. Sales volumes for the second quarter and first half of fiscal 2009 were down 44% and 30%, respectively, compared to the same periods in 2008.
“Despite the lower capacity utilization in the second quarter, our ability to control costs at KES enabled us to increase our operating income over that achieved in the first quarter and to generate sufficient positive net income in the second quarter to nearly offset the net loss incurred in the first quarter,” continues Scheel. “Thus, we have nearly broken even on a net income basis and maintained our operating profitability during this very difficult economic period.”
ALJ is the parent company of KES Acquisition Co., which does business as Kentucky Electric Steel, the owner and operator of a steel mini-mill near Ashland, Ky., producing both merchant bar quality flats and special bar quality steel flats.
