Anticipates Positive EBITDA From Operations for December 2007 and First
Quarter 2008
WHEELING, W.Va., March 7 /PRNewswire-FirstCall/ -- Esmark Incorporated
(Nasdaq: ESMK) (the "Company") today announced it has entered into an
agreement to sell its minority equity interest in Wheeling-Nisshin, Inc., a
joint venture with Nisshin Steel Co., Ltd. Under the agreement, the Company
will sell its 35.7% interest for $71.4 million to Nisshin Holding, Inc.,
which currently owns the remaining 64.3% equity interest position. This
transaction is expected to close in March 2008, and the net proceeds will
be used to reduce long-term debt.
James Bouchard, Chairman and Chief Executive Officer of the Company,
stated, "As detailed in my November 6, 2007 letter to our shareholders,
today's actions represent one of the first phases of our plan to make
Esmark profitable. The minority interest in Wheeling-Nisshin was not
strategic to our core businesses and the reduction of debt will improve our
ability to operate the Company and achieve our cost reduction goals. As we
have committed, we will continue to evaluate all of our operations and take
actions to discontinue non-competitive product offerings and equipment,
improve our operations, as well as evaluate and pursue when appropriate
strategic options, all in an effort to enhance our Company and position it
for sustained, long-term growth."
Bouchard added, "Improvements made in 2007 to our EAF to enhance its
hot-charging ability and to accept higher residual scrap have also resulted
in immediate cost savings to the Company in 2008. I am also pleased to
report that we expect EBITDA for our Mill Operations, before any opening
balance sheet adjustments, to be positive in December, the Company's first
full month of operation post-merger. EBITDA is also anticipated to be
positive in the first quarter of 2008 for both of our operating segments.
This is a strong indication that the operational changes we have already
implemented are favorably impacting the bottom line. Our financial,
strategic, and operational partners have helped greatly. Our plan is
underway and working."
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements are based on management's current
expectations and assumptions that are subject to known and unknown risks
and uncertainties that could cause actual results to differ materially.
These risks and uncertainties include, among others, factors relating to
(i) the risk that the conditions to closing under the agreement for the
sale of WPSC's interest in Wheeling-Nisshin may not be satisfied, (ii) the
risk that the Company may not achieve management's anticipated cost savings
or benefits from initiatives to lower costs and improve operations, (iii)
material adverse changes in economic or industry conditions generally,
including credit market conditions and related issues, and global supply
and demand conditions and prices for our products; (iv) material adverse
changes in the markets we serve, (v) volatility of prices and availability
of supply of the raw materials that are critical to the manufacture of our
products, (vi) significant legal proceedings or investigations adverse to
us, and (vii) certain other risks detailed in the other reports and filings
with the SEC by the Company, which identify important risk factors that
could cause actual results to differ from those contained in the
forward-looking statements. In addition, any forward-looking statements
represent the Company's views only as of today and should not be relied
upon as representing views as of any subsequent date. While the Company may
elect to update forward-looking statements from time to time, it
specifically disclaims any obligation to do so.
About Esmark Incorporated
Esmark Incorporated is a vertically integrated steel producer and
distributor, combining steel production capabilities through both blast
furnace and electric arc furnace technologies with the just-in-time
delivery of value-added steel products to a broad customer base
concentrated in the Ohio Valley and Midwest regions. Currently
headquartered in Wheeling, WV, the Company is a producer of carbon
flat-rolled products for the construction, container, appliance,
converter/processor, steel service center, automotive and other markets.
The company's products include various sheet products such as hot rolled,
cold rolled, hot dipped galvanized, electro-galvanized, black plate and
electrolytic tinplate. More information about Esmark can be found at
http://www.esmark.com.
SOURCE Esmark Incorporated
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CONTACT:
Dennis Halpin of Esmark Incorporated,
+1-304-234-2421, +1-304-654-6474 (mobile), dhalpin@esmark.com; or
Bill Keegan of Edelman, +1-312-927-8424, bill.keegan@edelman.com
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