Open / Close Advertisement

Republic Announces Plans for New Caster at Canton Plant

11/29/2004 - Republic Engineered Products Inc. announced plans for an approximately $50 million investment that includes a second continuous caster at its Canton plant.

Republic Engineered Products Inc. announced plans for an approximately $50 million investment that includes a second continuous caster at its Canton plant.

 

Third Quarter Financial Results

Republic reported net income of approximately $19.7 million on net sales of $839.8 million for the nine months ended September 30, 2004.

Net income of approximately $19.7 million compares to a net loss of $105.5 million in the comparable period of 2003. Net sales of $839.8 million represent a 49.8% increase compared to $560.7 million reported a year earlier. Operating income was approximately $32.6 million, compared to an operating loss of approximately $87.9 million. (Comparison to 2003 results of Republic's predecessor, REPH LLC, may be of limited value.)

Results reflect a change in inventory accounting, effective January 1, 2004, from the first-in, first-out (FIFO) method to the last-in, first-out (LIFO) method. As a result of this change, the improvement in reported results from 2003 to 2004 is less than it would be without the change in accounting.

Republic also announced the payout of more than $1 million to its hourly and salaried employees under its profit-sharing programs.

Profit Sharing—As a result of its financial performance, Republic distributed more than $1 million in profit sharing payments to its employees on November 15. Also, as a result of another USWA contract provision tied to its financial results, Republic will contribute more than $2.4 million to a benefits trust established for retiree healthcare.

The new caster, along with additional steel refining and processing equipment, will provide Republic with additional flexibility to schedule steel production at its two electric arc furnaces in Canton and its blast furnace in Lorain.

"This investment, being made in conjunction with state and local cooperation, will strengthen our capability to supply high-quality electric furnace steel products to the automotive, industrial equipment and other demanding markets," said Joseph F. Lapinsky, President and CEO.

Plans call for Republic to employ approximately 170 people to operate the new caster and related equipment, which will cast blooms and billets that will be rolled into bars at facilities in Lorain and Lackawanna, N.Y. Republic expects to begin construction by the end of the year, pending finalization of state and local permits and financial incentives, and to start up the new equipment during the fourth quarter of 2005.

"Adding electric furnace casting capacity in Canton will provide more operating flexibility, and permit us to better address the impact of raw material cost and supply variability," Lapinsky said. "We will continue to schedule production based on customer needs and market conditions."

Republic Engineered Products, Inc. is a leading North American supplier of special bar quality (SBQ) steel. Headquartered in Fairlawn, Ohio, the company operates steelmaking centers in Canton and Lorain, Ohio, and value-added rolling and finishing facilities in Canton, Lorain and Massillon, Ohio; Lackawanna, N.Y.; Gary, Ind.; and Hamilton, Ont. Republic employs approximately 2400 people.