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FOR IMMEDIATE RELEASE
May 2, 2002
First Quarter 2002 Results
WEIRTON, W.Va. -- Weirton Steel Corporation (OTCBB: WRTL) today reported a net loss of $44.6 million, or $1.06 per diluted share, in the first quarter of 2002. This compares to a net loss of $75.3 million or $1.81 per diluted share, in the first quarter of 2001, which includes a $12.3 million restructuring charge associated with an involuntary reduction program for management employees and an $18.1 million write-off of joint venture interests. Excluding these one-time charges, the first quarter 2001 net loss would have been $44.9 million or $1.08 per diluted share. Net sales in the first quarter of 2002 were $236.1 million on shipments of 565,700 tons, compared to $252.2 million on 587,100 tons of shipments for the same period in 2001.
As a result of the Section 201 tariffs on steel imports and domestic supply constraints, business fundamentals are improving. "Order rates and selling prices for our products have begun to recover from historically low levels, and we expect to see improved results for the second quarter," said John H. Walker, President and CEO.
During the first quarter of 2002, the Company had substantially implemented its cost savings program, which includes a workforce reduction of approximately 550 employees, reduction of employee benefit costs and other operating cost savings, and also received an additional $24 million in liquidity improvements under previously announced financing programs entered into primarily with the Company’s vendors.
In addition, during the first quarter the Company reached an agreement with an informal committee of senior noteholders regarding an exchange offer of its outstanding 11 3/8% Senior Notes due 2004 and 10 3/4% Senior Notes due 2005. The Company anticipates that the notes exchange offer will be launched as early as May 3, 2002.
The Company announced on April 29, 2002 that the City of Weirton, West Virginia, at the request of the Company commenced an exchange offer for 100% of its outstanding 8.625% Pollution Control Revenue Refunding Bonds due 2014. Concurrently with this exchange offer, the City of Weirton is soliciting consents from the holders of its outstanding bonds to amend the loan agreement between the City and Weirton Steel Corporation relating to these bonds.
Any statement contained in this release, other than historical information, is forward-looking. A variety of factors could cause business conditions and the Company’s actual results and experience to differ materially from those expected by the Company or expressed in the Company’s forward-looking statements. Additional information concerning these factors is available in the Company’s most recent Annual Report and filings with the Securities and Exchange Commission.
Weirton Steel Corporation is a major integrated producer of flat rolled carbon steel with principal product lines consisting of tin mill products and sheet products. The Company is the second largest domestic producer of tin mill products with approximately 25% of the domestic market share.