WHEELING, W.Va., May 9 /PRNewswire-FirstCall/ -- Wheeling-Pittsburgh
Corporation (Nasdaq: WPSC), the holding company of Wheeling-Pittsburgh
Steel Corporation, today reported its financial results for the quarter
ended March 31, 2006.
For the first quarter of 2006, the Company reported a net loss of $2.1
million, or $(0.15) per basic and diluted share. This compares to net
income of $8.1 million for first quarter of 2005, or $0.57 per basic share
and $0.56 per diluted share.
Net sales for the first quarter of 2006 totaled $437.0 million as
compared to net sales of $399.5 million for the first quarter of 2005. Net
sales for the first quarter of 2006 and 2005 included $14.8 million and
$12.9 million, respectively, from the sale of excess raw materials. Net
sales of steel products for the first quarter of 2006 totaled $422.2
million on steel shipments of 620,668 tons, or $680 per ton. Net sales of
steel products for the first quarter of 2005 totaled $386.6 million on
steel shipments of 522,803 tons, or $739 per ton. The increase in net sales
was due to higher steel shipments and higher sales of excess raw materials,
offset by a lower average selling price of steel products. Steel shipments
during the first quarter of 2005 were adversely affected by the basic
oxygen furnace ductwork collapse, which occurred in December 2004.
Cost of sales for the first quarter of 2006 totaled $408.1 million as
compared to cost of sales of $355.9 million for the first quarter of 2005.
Cost of sales for the first quarter of 2006 included the costs related to
the sale of excess raw materials of $13.2 million and was reduced by a $7.3
million insurance recovery applicable to prior year claims. Cost of sales
for the first quarter of 2005 included the costs related to sale of excess
raw materials of $7.4 million and was reduced by $4.4 million related to
the receipt of an environmental settlement applicable to prior year claims.
Cost of sales of steel products sold during the first quarter of 2006
totaled $402.2 million, or $648 per ton. Cost of sales of steel products
sold during the first quarter of 2005 totaled $352.9 million, or $675 per
ton. The increase in cost of steel products sold of $49.3 million resulted
principally from an increase in the volume of steel products sold, offset
by a reduction in the cost of steel products sold of $27 per ton. The
decrease in the cost to produce steel products resulted principally from a
decrease in the cost of scrap, offset, in part, by increases in the cost of
certain other raw materials used in our steelmaking process.
"While our first quarter loss represented an improvement from the
fourth quarter of 2005, it was a disappointment given current demand for
our products. Importantly, however, we continue to make progress in
implementing key initiatives of our long-term strategic plan," said James
G. Bradley, Wheeling-Pittsburgh Chairman and Chief Executive Officer. "Our
Hot Strip Mill roll changer project was a success, the EAF is consistently
producing at higher rates and the rehabilitation of the Mountain State
Carbon coke plant is well underway. We expect to see benefits to our
performance as these projects are completed."
Management will conduct a live call today at 11 a.m. ET to review the
Company's financial results and business prospects. Individuals wishing to
participate can join the conference call by dialing 800-366-7640 or
303-262-2005. A replay will be available until May 16, 2006 by dialing
800-405-2236 or 303-590-3000, and using the pass code 11060101. The call
can also be accessed via the Internet live or as a replay through
http://www.earnings.com.
This release may contain projections or other forward-looking
statements regarding future events or the future financial performance of
Wheeling- Pittsburgh Corporation that involve risks and uncertainties.
Readers are cautioned that these forward-looking statements are only
predictions and may differ materially from actual future events or results.
Readers are referred to the "Item 1A - Risk Factors" section of the
Company's Annual Report on Form 10-K for the year ended December 31, 2005,
and other reports and filings with the SEC, which identify important risk
factors that could cause actual results to differ from those contained in
the forward-looking statements. These risk factors include, among others,
the Company's potential inability to generate sufficient operating cash
flow to service or refinance its indebtedness, concerns relating to
financial covenants and other restrictions contained in its credit
agreements, intense competition, dependence on suppliers of raw materials,
the remaining issues related to the successful completion of the full ramp
up of production from our electric arc furnace, and cyclical demand for
steel products. In addition, any forward-looking statements represent
Wheeling-Pittsburgh Corporation's views only as of today and should not be
relied upon as representing the Company's views as of any subsequent date.
While Wheeling-Pittsburgh Corporation may elect to update forward-looking
statements from time to time, the Company specifically disclaims any
obligation to do so.
About Wheeling-Pittsburgh:
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 manufactures
and sells hot rolled, cold rolled, galvanized, pre-painted and tin mill
sheet products. 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.
The Company's condensed consolidated statements of operations and
condensed consolidated balance sheets are attached.
WHEELING-PITTSBURGH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended
March 31,
2006 2005
Revenues:
Net sales, including sales to
affiliates of $94,674 and $99,839 $436,978 $399,508
Cost and expenses:
Cost of sales, including cost of
sales to affiliates of $92,682
and $93,073, excluding depreciation
and amortization expense 408,118 355,958
Depreciation and amortization expense 8,307 9,469
Selling, general and administrative
expense 20,650 19,317
Total cost and expenses 437,075 384,744
Operating (loss) income (97) 14,764
Interest expense and other financing
costs (6,151) (5,580)
Other income 2,816 2,968
(Loss) income before income taxes (3,432) 12,152
Income tax provision - 4,052
(Loss) income before minority
interest (3,432) 8,100
Minority interest in loss of
consolidated subsidiary 1,322 -
Net (loss) income $(2,110) $8,100
(Loss) earnings per share:
Basic $(0.15) $0.57
Diluted $(0.15) $0.56
Weighted average shares (in
thousands):
Basic 14,516 14,109
Diluted 14,516 14,364
Shipments - tons 620,668 522,803
Production - tons 661,411 653,264
WHEELING-PITTSBURGH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
March 31, December 31,
2006 2005
Assets
Current assets:
Cash and cash equivalents $9,578 $8,863
Accounts receivables, less allowance for
doubtful accounts of $2,716 and $2,594 178,028 132,643
Inventories 218,433 166,566
Prepaid expenses and deferred charges 17,722 21,732
Total current assets 423,761 329,804
Investment in and advances to
affiliated companies 47,155 55,100
Property, plant and equipment, less
accumulated depreciation
of $84,126 and $75,977 577,518 557,500
Deferred income tax benefits 25,441 26,264
Restricted cash 17,590 13,691
Other intangible assets, less accumulated
amortization of $1,951 and $1,795 4,569 4,725
Deferred charges and other assets 13,101 33,164
Total assets $1,109,135 $1,020,248
Liabilities
Current liabilities:
Accounts payable, including book
overdrafts of $17,029 and $21,020 $130,788 $117,821
Short-term debt 85,700 17,300
Payroll and employee benefits payable 45,905 41,125
Accrued income and other taxes 12,219 11,735
Deferred income taxes payable 25,441 26,264
Accrued interest and other liabilities 6,873 5,757
Deferred revenue 4,106 8,523
Long-term debt due in one year 31,534 31,357
Total current liabilities 342,566 259,882
Long-term debt 277,396 284,100
Employee benefits 123,661 123,498
Other liabilities 12,732 13,030
Total liabilities 756,355 680,510
Minority interest in consolidated
subsidiary 88,363 74,234
Stockholders' equity
Preferred stock - $.001 par value;
20,000,000 shares authorized;
no shares issued or outstanding - -
Common stock - $.01 par value;
80,000,000 shares authorized;
14,700,956 and 14,686,354 issued;
14,694,290 and 14,679,688 shares
outstanding 147 147
Additional paid-in capital 277,120 276,097
Accumulated deficit (12,750) (10,640)
Treasury stock, 6,666 shares, at cost (100) (100)
Total stockholders' equity 264,417 265,504
Total liabilities and
stockholders' equity $1,109,135 $1,020,248
SOURCE Wheeling-Pittsburgh Corporation
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Related links:
http://www.wpsc.com
http://www.prnewswire.com/comp/967451.html /
CONTACT:
Media, Jim Kosowski, +1-304-234-2440, or
Financial Community, Dennis Halpin, +1-304-234-2421, both of
Wheeling-Pittsburgh Corporation
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