ALJ Announces Results for Fiscal Year 2009
01/04/2010 - ALJ Regional Holdings, Inc., the parent company of Kentucky Electric Steel, posted net income of $1.118 million for the fiscal fourth quarter, and net income of $53,161 for the fiscal year ended September 30, 2009.
ALJ Regional Holdings, Inc., the parent company of Kentucky Electric Steel, posted net income of $1.118 million for the fiscal fourth quarter, and net income of $53,161 for the fiscal year ended September 30, 2009. The company had previously reported net sales of $24.3 million for the fourth quarter and net sales of $110.1 million for the year.
The $1.118 million net income (0.02 per share) for the 4th quarter compares to a net loss of $3.208 million (-0.07 per share) for the year-ago 4th quarter ending September 30, 2008. The $53,161 net income (0.00 per share) for the year compares to net income of $6.332 million (0.13 per share) for the fiscal year ended September 30, 2008.
“Since the KES plant started up in 2004, we have told our employees, our lenders and our owners that anyone could make money in the steel industry in the conditions that prevailed through mid-2008 but that the true test of our success would come with a down market,” said John Scheel, ALJ’s Chief Executive Officer. “We got our opportunity in 2009 to prove our assertion and I believe that we passed with high marks.
“The global recession which negatively impacted virtually every business led to massive red ink in much of the steel industry,” continued Scheel. “Sales revenues and backlogs declined to levels not seen in at least a generation. We had to reduce our breakeven level to below 50% and continue to provide superior customer service. We did both and were rewarded with a profitable year. It wasn't much but not many folks in our business avoided red ink. We feel well-positioned to continue to weather this storm and take advantage when conditions do improve.”
ALJ is the parent of Kentucky Electric Steel, a steel minimill near Ashland, Ky. Kentucky Electric Steel produces steel bar flats as both merchant bar quality flats (MBQ Bar Flats) and special bar quality flats (SBQ Bar Flats).
