WHEELING, W.Va., July 26 /PRNewswire-FirstCall/ -- Wheeling-Pittsburgh
Corporation (Nasdaq: WPSC) announced today that it expects second quarter
operating income to be approximately $19 million, or about $8 million above
previous guidance, due to higher than expected revenues resulting from
increased selling prices during the quarter, as well as lower than expected
costs. The higher quarterly operating income reflects greater than expected
expenses for profit sharing and VEBA contributions in the quarter.
"Wheeling-Pittsburgh is beginning to realize the benefits of its
investments over the past three years that have allowed us to expand
capacity, increase the reliability of our facilities and improve our
product quality," said James G. Bradley, Chairman and CEO. "The
installation of automatic roll changers at the hot strip mill, which has
increased its annual capacity from 2.8 million tons up to 3.4 million tons,
the performance of the electric arc furnace and the rehabilitation of the
coke plant that is taking place as part of our Mountain State Carbon joint
venture, all validate the strategic plan that we put in place more than
three years ago. These positive results also reflect the hard work of the
3,100 Wheeling-Pittsburgh Steel employees and their efforts are to be
commended."
Bradley added, "Since emerging from bankruptcy in 2003 we have
continued to look at all ways to enhance our competitiveness and build and
deliver shareholder value. Our ongoing negotiations with Companhia
Siderurgica Nacional regarding the proposed strategic alliance in North
America remain positive, and we believe this combination will deliver
significantly more value than the recent proposal by Esmark. Upon
finalization of a definitive agreement, we intend to provide detailed
information about the strategic, operational and financial aspects of the
proposed transaction that will enable our shareholders to fully understand
its many benefits. We fully expect that the alliance which we are
finalizing with CSN will be subject to a vote of our shareholders at the
appropriate time."
Bradley concluded, "Our Board is firmly committed to protecting the
interests of all shareholders and protecting against any attempt to deprive
them of value that is rightfully theirs."
The Company expects to announce its second quarter results on August 8,
2006.
SOURCE Wheeling-Pittsburgh Steel Corporation
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Related links:
http://www.wpsc.com/
http://www.prnewswire.com/comp/967451.html /
CONTACT:
Jim Kosowski of Wheeling-Pittsburgh Steel
Corporation, +1-304-234-2440
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