WHEELING, W.Va., June 29 /PRNewswire-FirstCall/ -- Wheeling-Pittsburgh
Corporation (Nasdaq: WPSC) announced today that second quarter results will
be lower than previously expected.
While June is not quite completed, the EBITDA loss for the second
quarter is expected to be approximately $25 million, after including the
favorable effect of a $9.5 million business interruption insurance
recovery. The second quarter has been significantly impacted by the
unplanned outages in the EAF and BOF during April, increased scrap costs,
as well as weaker demand for flat rolled products. The lingering impact of
the unplanned outages that occurred in April and the fact that the rebound
in market conditions did not materialize as expected at the time of the
Company's previous guidance contributed to the shortfall. James P.
Bouchard, Chairman and Chief Executive Officer commented, "While this
quarter will represent an improvement from the first quarter's results, it
is still well below our expectations."
The Company has also announced a two-week maintenance outage on its
electric arc furnace during July. This outage, which had been planned for
some time, comes at an opportune time in that the commercial conditions
which impacted the second quarter are expected to continue through July.
This outage, which will coincide with other planned maintenance at the
Company's Mingo Junction facility, could reduce productive capacity during
the period by as much as 40,000 tons.
With respect to the Company's combination with Esmark Incorporated, the
registration statement for the combination continues to go through the
standard review process with the Securities and Exchange Commission and the
Company is working towards a shareholder vote in the third quarter of this
year.
Certain statements contained in this news release are "forward-looking
statements" that involve risks and uncertainties. Factors that might cause
the Company's actual results to differ from those anticipated in forward-
looking statements include but are not limited to: (1) market demand for
steel products; (2) competitive pressure on sales and pricing; (3)
availability and costs of raw materials, including steel scrap as well as
availability and costs for energy. 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, 2006, 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.
In connection with the proposed business combination of Wheeling-
Pittsburgh Corporation ("Wheeling-Pitt") and Esmark Incorporated
("Esmark"), Clayton Acquisition Corporation ("New Esmark") has filed with
the SEC a registration statement on Form S-4 and related preliminary proxy
statement with the SEC. Stockholders of Wheeling-Pitt and Esmark are urged
to read the registration statement, proxy statement/prospectus and any
other relevant documents, including the definitive proxy
statement/prospectus, filed with the SEC when they become available, as
well as any amendments or supplements to those documents, because they will
contain important information, including information on the proposed
transaction as well as participants and their interests in the Company and
Esmark. Stockholders will be able to obtain a free copy of the registration
statement and related proxy statement/prospectus, as well as other filings
containing information about Wheeling-Pitt and Esmark, at the SEC's website
at http://www.sec.gov. New Esmark, Wheeling-Pitt, Esmark and their
respective directors and executive officers may be deemed participants in
the solicitation of proxies from the stockholders of Wheeling-Pitt in
connection with the proposed business combination transaction. Information
regarding the participants in the proxy solicitation and their respective
interests may be obtained by reading the registration statement and related
preliminary proxy statement. This document shall not constitute an offer to
sell or the solicitation of an offer to buy any securities, nor shall there
be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
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.
SOURCE Wheeling-Pittsburgh Steel Corporation
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Related links:
http://www.wpsc.com/
http://www.prnewswire.com/comp/967451.html /
CONTACT:
Dennis Halpin of Wheeling-Pittsburgh Steel
Corporation, +1-304-234-2421
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