WEIRTON, W.Va. -- Weirton Steel Corporation (NYSE: WS) today reported a loss from operations of $54.5 million for the second quarter of 2001. It was determined that the cumulative financial losses had reached the point that fully reserving the deferred tax assets was required. Including this item, Weirton’s net loss for the second quarter was $217.8 million, or $5.24 per diluted share. Net sales in the second quarter of 2001 were $240.2 million on shipments of 575,400 tons, compared to $304.8 million on 653,400 tons of shipments for the same period in 2000.

The Company’s net loss for the first half of 2001 was $293.1 million, or $7.05 per diluted share, which included a non-cash charge of $153.8 million to fully reserve the deferred tax assets, a restructuring charge of $12.3 million associated with an involuntary reduction program for exempt employees and the write-off of the Company’s remaining interests in certain joint ventures totaling $18.1 million. Excluding the effects of these items, the Company’s net loss for the first half of 2001 was $108.9 million, or $2.62 per diluted share. Last year’s first six months resulted in net income of $1.2 million, or $0.03 per diluted share. Net sales for the first half of 2001 were $492.3 million on shipments of 1,162,500 tons compared to $634.6 million on shipments of 1,393,800 tons for the same period last year.

Results for the second quarter of 2001 were adversely affected by lower realized selling prices for sheet products, lower overall shipments and higher operating costs principally related to employee benefit costs and the impact of lower operating levels. Commenting on the outlook John Walker, chief executive officer said, "We are encouraged that the higher order rates we are currently experiencing will result in improved performance for the third quarter."

Total liquidity at June 30, 2001 was $55.4 million compared to $105.4 million at March 31, 2001. "Maintaining a level of liquidity sufficient to meet operating needs in this market has been our main focus," added Walker. During the second quarter, the Company borrowed an additional $23.0 million under its working capital facilities.

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 operates an integrated flat rolled steel producing plant in Weirton, W.Va.