Wheeling-Pittsburgh Corp., the holding company of Wheeling-Pittsburgh Steel Corp., reported net income of $35.6 million on net sales of $401.8 million for the quarter ended September 30, 2004.

Net income of $35.6 million ($3.53 per basic share and $3.42 per diluted share) compares to net income of $27.1 million ($2.85 per basic share and $2.79 per diluted share) for the second quarter. Net sales totaled $401.8 million on shipments of 535,575 tons of steel products, as compared to net sales of $356.1 million on shipments of 548,474 tons of steel products shipped for the previous quarter.

Operating income of $54.8 million represents a 39% increase over operating income of $39.4 million reported for the second quarter of 2004. Operating income was increased by a $5.0 million non-recurring reduction of VEBA expense that resulted from an agreement with the USWA authorizing the VEBA trust to sell certain shares of our common stock, with excess proceeds reducing current VEBA expense.

Average selling price for steel shipped was $750 per ton as compared to $649 per ton for the second quarter. Cost of goods sold per ton averaged $600, up from $534 per ton reported for the second quarter. Hurricane Ivan adversely affected costs incurred during the third quarter of 2004. Depreciation and selling, general and administrative expenses totaled $7.8 million and $17.7 million, respectively, for the third quarter as compared to $7.5 million and $16.3 million, respectively, for the second quarter. Interest expense declined to $4.4 million as compared to $5.1 million for the previous quarter.

During the third quarter, Wheeling-Pittsburgh completed a public offering of 3,719,898 shares of its common stock. Net proceeds of $99.7 million were used to reduce outstanding indebtedness and to provide funds for future capital expenditures.

"The company's operating income of $54.8 million reflects continued strong pricing throughout the quarter, and occurred despite the adverse effects of Hurricane Ivan," said James G. Bradley, Chairman, President and CEO of Wheeling-Pittsburgh. "These results, together with our successful public stock offering, have strengthened our balance sheet and improved our financial resilience. Additionally, installation of our new continuous EAF continues on schedule and the LMF portion began operation on Oct. 1."

Bradley added, "Subsequent to the third quarter, we completed important outages at our hot strip mill and finishing facilities. These outages will help ensure our ability to produce and ship product. As a result of anticipated continued high demand and constraints on raw materials, we expect steel pricing in 2005 to continue to be strong."

Wheeling Pittsburgh is an integrated steel company engaged in the making, processing and fabrication of steel and steel products. 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.