ALJ Releases 2nd Quarter Revenue Performance
07/10/2009 - ALJ Regional Holdings, the parent company of Kentucky Electric Steel, reported revenues of $19.4 million for the quarter and revenues of $85.9 million for the nine months ended June 30, 2009.
ALJ Regional Holdings, the parent company of Kentucky Electric Steel, reported revenues of $19.4 million for the quarter and revenues of $85.9 million for the nine months ended June 30, 2009.
The $19.4 million third-quarter revenues compare to revenues of $51.1 million for the year-ago third quarter. The $85.9 million nine month revenues compare to revenues of $133.4 million for the comparable nine-month period in fiscal 2008.
"The revenue for the first three quarters and third quarter of Fiscal 2009 was down 36% and 62% from the comparable periods in Fiscal 2008 and sales volumes for the same periods were off by 37% and 50%, respectively,” commented John Scheel, ALJ's Chief Executive Officer. “Like most companies in the steel industry, we have been affected by not only lower volume but also by lower pricing. The third quarter of Fiscal 2008 was a period of relatively high pricing so that finished good’s prices for the third quarter of Fiscal 2009 were off by 24%.
“We believe that our results reflect the industry-wide reduction in demand for steel products,” said Scheel.
“We have seen stabilization of sales volumes in the last quarter and we believe that the market is poised for a protracted recovery,” added Scheel. “Further, KES has continued to maintain positive operating income and, as such, is in a good position to take advantage of any recovery."
ALJ is the parent company of KES Acquisition Co., which does business as Kentucky Electric Steel, the owner and operator of a steel minimill near Ashland, Ky., producing both merchant bar quality flats (MBQ Bar Flats), and special bar quality steel flats (SBQ Bar Flats).
