Wheeling-Pittsburgh Corp., the holding company of Wheeling-Pittsburgh Steel Corp., reported a net loss of $21.1 million on revenues of $374.9 million for the quarter ended September 30, 2005.

The $21.1 million net loss (loss of $1.47 per diluted share) compares to net income of $35.5 million ($3.42 per diluted share) for the third quarter of 2004. The $374.9 million in revenue compares to $401.8 million in third quarter 2004, a decrease of $26.9 million. Revenues included $21.0 million related to the sale of raw materials.

Steel shipments, 567,577 tons, compares to steel shipments of 535,575 tons in third quarter of 2004. The average selling price per ton of steel products was $623 per ton, compared to $750 per ton in third quarter 2004, a $127 per ton decrease.

Cost of sales increased by $50.4 million over third quarter 2004 to $371.9 million. Cost of sales for steel products totaled $357.4 million versus $321.5 million in third quarter 2004. Cost of sales for steel products averaged $630 per ton, as compared to $600 per ton in the third quarter 2004, principally due to increasing raw material costs.

On September 29, 2005, the company amended its term loan agreement, which allowed the company to contribute its coke producing facility to a new joint venture. The amended term loan agreement also provided for a liquidity enhancement of up to $75 million and provided for financial covenant relief for the third and fourth quarters of 2005. With this relief, the company was in compliance with the covenants for the third quarter 2005, however, it is possible the company may not be able to satisfy certain financial covenants under the term loan agreement in the future. As a result, the long-term portion of the term loan agreement was reclassified as a current liability as of September 30, 2005. The company is pursuing remedies for this matter.

Comments—"Results for the third quarter were adversely affected by falling steel prices and high or increasing raw material costs. We did, however, consummate the coke plant joint venture late in the third quarter, which will provide sufficient funding to completely rebuild the coke plant facility so that we will remain self-sufficient with respect to our coke needs. Completion of the joint venture also allowed us to repay our revolver and together with the liquidity enhancement increased our liquidity to $168 million at the end of the third quarter," said James G. Bradley, Wheeling-Pittsburgh Chairman and CEO.

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.