WHEELING, W.V., May 10 /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, 2005.
For the first quarter of 2005, the Company reported net income of $8.1
million or $.56 per diluted share. This compares to a reported net loss of
$6.7 million or $(.71) per diluted share for the first quarter of 2004, which
was restated to reflect a change in accounting method relative to accounting
for stock options.
Net sales for first quarter of 2005, totaled $399.5 million. Excluding
revenue from the sale of raw material, the average selling price of steel
shipped during the first quarter of 2005 was $739 per ton on steel shipments
of 522,803 tons. This compares to net sales for the first quarter of 2004 of
$274.2 million. The average selling price of steel shipped during the first
quarter of 2004 was $509 per ton on steel shipments of 538,701 tons.
Cost of sales for the first quarter of 2005 totaled $355.9 million.
Excluding the cost of raw material sold during the quarter and a one-time $4.4
million cost recovery item, cost of sales per ton of steel shipped was $675.
Cost of sales for the first quarter of 2004 totaled $256.1 million or $475 per
ton of steel shipped. Cost of sales for the first quarter of 2005 was
adversely affected by increases in the cost of scrap, iron ore and
metallurgical coal.
Production and shipments were adversely affected in the first quarter of
2005 as a result of the basic oxygen furnace ductwork collapse. We are
vigorously pursuing insurance claims for property damage and business
interruption relative to this incident.
"While our 2005 first quarter was adversely impacted by recent industry
developments, we feel these developments also validate key elements of our
long-term business strategy which shifts a significant amount of our
steelmaking capacity to electric arc furnace technology," said James G.
Bradley, Chairman and CEO. "Our transition to EAF and blast furnace technology
reduces our reliance on iron ore as world prices have increased and as scrap
prices continue to moderate."
Bradley notes that the EAF recently introduced hot metal charging into the
furnace last week, making it the only EAF in the Western Hemisphere to adopt
this practice.
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 1-800-257-1836 or
1-303-262-2140. A replay of the call will be available until May 17, 2005 by
dialing 1-800-405-2236 or 1-303-690-3000 and using pass code 11029678.
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 "Business - Risk Factors" section of the Company's Annual Report on
Form 10-K for the year ended December 31, 2004, 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 difficulties involved in ramping up 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'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.
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,
2005 2004
Revenues:
Net sales, including sales to
affiliates of $99,839 and $65,340 $399,508 $274,206
Cost and expenses:
Cost of sales, including cost of
sales to affiliates of $93,073
and $61,251, excluding depreciation
and amortization expense 355,958 256,069
Depreciation and amortization expense 9,469 7,689
Selling, general and administrative
expense 19,317 15,038
Total cost and expenses 384,744 278,796
Operating income (loss) 14,764 (4,590)
Interest expense and other financing
costs (5,580) (5,219)
Other income 2,968 3,012
Income (loss) before income taxes 12,152 (6,797)
Income tax provision (benefit) 4,052 (79)
Net income (loss) $8,100 $(6,718)
Earnings per share
Basic $0.57 $(0.71)
Diluted $0.56 $(0.71)
Weighted average shares (in thousands):
Basic 14,109 9,500
Diluted 14,364 9,500
Shipments - tons 522,803 538,701
Production - tons 653,264 589,337
WHEELING-PITTSBURGH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
March 31, December 31,
2005 2004
Assets
Current assets:
Cash and cash equivalents $2,596 $31,198
Accounts receivables, less
allowance for doubtful accounts of
$2,938 and $2,697 191,742 144,509
Inventories 219,658 156,669
Prepaid expenses and deferred
charges 25,200 29,953
Total current assets 439,196 362,329
Investment in and advances to
affiliated companies 49,831 53,016
Property, plant and equipment, less
accumulated depreciation of $51,814
and $42,536 488,787 487,308
Deferred income tax benefits 17,319 18,751
Restricted cash - 12,502
Other intangible assets, less
accumulated amortization of $1,525
and $1,346 1,263 5,174
Deferred charges and other assets 14,914 16,406
Total assets $1,011,310 $955,486
Liabilities and stockholders' equity
Current liabilities:
Accounts payable, including book
overdrafts of $13,395 and $8,894 $81,583 $92,434
Short-term debt 52,300 -
Payroll and employee benefits
payable 54,888 48,611
Accrued income and other taxes 10,852 10,073
Deferred income taxes payable 17,319 18,751
Accrued interest and other
liabilities 6,324 7,843
Long-term debt due in one year 31,616 31,427
Total current liabilities 254,882 209,139
Long-term debt 302,737 302,156
Employee benefits 134,973 135,608
Other liabilities 17,396 17,978
Total liabilities 709,988 664,881
Stockholders' equity
Preferred stock - $.001 par value;
20,000,000 shares authorized;
no shares issued or outstanding - -
Common stock - $.01 par value;
14,494,531 and 14,437,223 shares
issued; 14,490,531 and 14,433,223
shares outstanding 145 144
Additional paid-in capital 269,943 267,327
Accumulated earnings 31,294 23,194
Treasury stock, 4,000 shares, at cost (60) (60)
Total stockholders' equity 301,322 290,605
Total liabilities and
stockholders' equity $1,011,310 $955,486
SOURCE Wheeling-Pittsburgh Corporation
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