LJ Reports Results for Fiscal Year 2008
01/02/2009 - ALJ Regional Holdings, the parent company of Kentucky Electric Steel, posted a net loss of $3.208 million for the fourth quarter, and net income of $6.332 million for the fiscal year ended September 30, 2008.
ALJ Regional Holdings, Inc., the parent company of Kentucky Electric Steel posted a net loss of $3.208 million for the fourth quarter, and net income of $6.332 million for the fiscal year ended September 30, 2008. The company had previously reported record revenue of $52.2 million for the fourth fiscal quarter and record revenue of $185.6 million for the year.
The $3.208 million fourth quarter loss compares to net income of $1.061 million for the 4th quarter ending September 30, 2007. The $6.332 million net income for the year compares to net income of $6.572 million for the fiscal year ended September 30, 2007.
“2008 was a record year for ALJ for revenue and for operating income,” commented John Scheel, ALJ’s Chief Executive Officer. “A rapid, steep drop in the US and global economic conditions began in our fourth quarter. As a consequence, we have recognized a lower of cost or market adjustment of $3.24 million related to falling steel scrap and billet values. This adjustment negatively impacted our fourth quarter and annual earnings, but it properly accounts for the realities of current events and positions us well to weather the recessionary marketplace going forward.
Scheel also noted that the company had reversed a $2.98 million gain taken in the first quarter related to ongoing expenses for discontinued operations of the predecessor corporation.
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. Kentucky Electric Steel produces steel bar flats as both merchant bar quality flats (MBQ Bar Flats) and special bar quality flats (SBQ Bar Flats).
