WCI CEO Retires as Earnings Expectations are Downgraded
07/09/2007 - WCI Steel announces the immediate retirement of Patrick G. Tatom from his roles as President, CEO, and a member of the Board of Directors. The company has also issued a warning statement about second-quarter earnings.
WCI Steel, Inc. announced the retirement of Patrick G. Tatom from his role as President, CEO, and a member of the Board of Directors, effective immediately.
The company also reported that second-quarter financial results will be lower than previously expected. Although June results are not finalized, second quarter shipments of 284,000 tons in line with prior guidance, previously disclosed outages in April and early May will result in an expected EBITDA loss of approximately $10 million. The company notes that weakness in key markets, escalating raw material costs, and the lingering impact of the outages have all contributed to the shortfall.
While the search for a permanent replacement for Tatom is underway, the company has appointed Michael C. Buenzow to serve as interim President and CEO. Mr. Buenzow, a Senior Managing Director at FTI Consulting Inc., has broad experience in assisting companies improve operations and drive long-term positive change.
"Mike Buenzow has an established record of successfully leading businesses that are confronting change,” said Jack W. Sights, Chairman of the WCI Steel Board of Directors. “He is a results-oriented individual with a proven ability to rapidly restore profitability in a highly competitive business environment."
“We appreciate Pat Tatom's service to WCI Steel and wish him the best in his future endeavors,” continued Sights. “We expect that under Mike's leadership, combined with an increased focus on customer service, quality and cost reduction, WCI Steel will return to profitability. We are committed to being faster and more aggressive in reaching profitability and leading WCI Steel to a brighter future."
WCI Steel is an integrated producer of value-added, custom steel products serving niche markets, emphasizing customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity steel products at its Warren, Ohio facility, focusing on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength, and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers across a wide range of industries.
