Wheeling-Pittsburgh Corp., the holding company of Wheeling-Pittsburgh Steel Corp., reported net income of $2.6 million on revenues of $415.2 million for the quarter ended June 30, 2005.

Second Quarter Results—The $2.6 million net income ($0.18 per diluted share) compares to net income of $27.0 million ($2.79 per diluted share) for the second quarter of 2004.

Revenue of $415.2 million compares with revenues of $356.1 million in the second quarter of 2004. The $59.1 million increase included $27 million related to the sale of raw materials as the company managed its raw materials position and transitioned to hybrid steel production, which resulted in certain excess raw material positions. The average selling price per ton of steel products was $710 per ton, a $61 per ton increase over $649 per ton in the second quarter of 2004.

Steel shipments of 547,000 tons were approximately the same as 548,000 tons shipped in second quarter of 2004. Cost charged to operations, approximately $410 million, represents a $93.2 million increase compared to second quarter 2004. Cost of sales for steel products totaled $371.2 million (averaging $679 per ton) versus $292.8 million (averaging $534 per ton) in the second quarter of 2004.

Comments—"While our second quarter results were affected by our coal supply issues and the lingering impact of the December 2004 basic oxygen furnace ductwork collapse, the impact of these items was lower than in the first quarter," said James G. Bradley, Wheeling-Pittsburgh Chairman and CEO. "Additional factors affecting our second quarter were our operational transition and ramp-up of our new electric arc furnace and the transition of the flat rolled sheet market."

Coke Plant Joint Venture—Wheeling-Pittsburgh and Severstal North America, Inc. (Severstal) have recently reached revised economic terms regarding formation of a joint venture for rehabilitation of Wheeling-Pittsburgh’s coke plant in Follansbee, W.Va. The revised terms continue to provide for substantial capital investments by Severstal and a 50% ownership in the joint venture. Wheeling-Pittsburgh will now contribute an additional $20 million of the rehabilitation costs, with Severstal's share being reduced by a like amount. Total cash contributions to the joint venture over four years by Wheeling-Pittsburgh and Severstal are expected to be $40 million and $120 million, respectively. Closing is subject to receipt of certain third party consents, including the approval by Wheeling-Pittsburgh Steel Corp.'s term loan lenders and the Federal loan guarantor, The Emergency Steel Loan Guarantee Board, of the finalized agreement.

Severstal has received the approval of its Board of Directors to proceed to financial closing on the joint venture with Wheeling-Pittsburgh Steel, subject to certain conditions including finalization of the definitive joint venture agreements and supporting contracts. According to Ronald J. Nock, Severstal North America’s President and CEO, "We have made tremendous progress in shaping this venture in a fashion that will benefit both partners and we expect that our remaining work can be completed by the end of August."

Bradley added, "Our agreement with Severstal represents a win-win for both companies. It will preserve Wheeling-Pittsburgh's ability to remain self sufficient for coke, while providing a significant portion of Severstal's coke requirements."

Wheeling-Pittsburgh is a steel company engaged in the making, processing and fabrication of steel and steel products using both integrated and electric arc furnace technology. 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.