.gif?width=220&height=200&mediaprotectionhash=b13da841472e6e7ed500ee35df2a350aaf53d75246118b33ea2095cc7e9a3fc4&ext=.gif)
Wheeling-Pittsburgh Reports 2nd Quarter Income
08/10/2004 - Wheeling-Pittsburgh Corp., the holding company of Wheeling-Pittsburgh Steel Corp., reported net income of $27.1 million on net sales of $356.1 million for the quarter ended June 30, 2004.
Wheeling-Pittsburgh Corp., the holding company of Wheeling-Pittsburgh Steel Corp., reported net income of $27.1 million on net sales of $356.1 million for the quarter ended June 30, 2004.
|
For accounting purposes, and as a result of Wheeling Pittsburgh’s emergence from bankruptcy, unaudited consolidated financial statements for periods after August 1, 2003 are not directly comparable to prior periods. Among other changes, there have been substantial reductions in employment levels, changes in employee and retiree benefits, and the revaluation of assets and liabilities. |
Second Quarter Results—Based on net income of $27.1 million in the second quarter, the company reported earnings per share of $2.85 per basic share and $2.79 per diluted share, as compared to a loss of $6.6 million or $0.70 per basic and diluted share in the first quarter. Operating income of $39.4 million represents a significant improvement over the operating loss of $4.5 million reported for the first quarter of 2004.
Net sales totaled $356.1 million on shipments of 548,474 tons of steel products, as compared to net sales of $274.2 million on shipments of 538,701 tons of steel products shipped in the previous quarter. The average selling price was $649 per ton vs. $509 in the first quarter.
Cost of goods sold per ton averaged $534, up from the $475 per ton reported in the first quarter of 2004. Cost of sales benefited from a $2.8 million insurance recovery. Depreciation and selling, general and administrative expenses totaled $7.5 million and $16.3 million, respectively, as compared to $7.7 million and $14.9 million, respectively, for the previous quarter. Interest expense declined to $5.1 million versus $5.2 million for the previous quarter.
Comments—"The company's operating income of $39.4 million, reflects continued strong pricing throughout the period," said James G. Bradley, Chairman, President and CEO of Wheeling-Pittsburgh Steel. "In addition, surcharges on our products are offsetting high raw material costs."
Bradley added, "As a result of continued high demand, we expect pricing to continue to strengthen in the third quarter over the second. While we expect that costs will rise as well, we do not expect that rise to be of the same magnitude. With the continued strength in both pricing and demand, we look forward to what we believe will be an advantageous environment for the balance of 2004."
Wheeling-Pittsburgh is an integrated steel company engaged in the making, processing and fabrication of steel and steel products. The company's products include hot rolled and cold rolled sheet and coated products such as galvanized, pre-painted and tin mill sheet. The company also produces a variety of steel products including roll formed corrugated roofing, roof deck, floor deck, bridgeform and other products used primarily by the construction, highway and agricultural markets.
