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For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp. (OTCBB:WRTL) today reported a net loss of $24.3 million, or $0.58 per diluted share of common stock, in the fourth quarter of 2002. The company also recorded an other comprehensive loss of $146.7 million related to its defined benefit pension plan. The plan's accumulated benefit obligation exceeded plan assets at year-end. The net loss for the fourth quarter of 2001 was $180 million, or $4.34 per diluted share. The net loss for 2001 included a restructuring charge of $129 million related to an early retirement program. Net sales for the fourth quarter of 2002 were $275.3 million on shipments of 572,700 tons compared to net sales of $226.5 million on 512,900 tons of shipments for the same period of 2001. For the year ended Dec. 31, 2002, the company reported a net loss of $117.4 million, or $2.80 per diluted share. Including the other comprehensive loss recorded in the fourth quarter, the comprehensive loss for the year was $264.1 million. The net loss for 2001 was $533.3 million, or $12.85 per diluted share. The 2001 results included restructuring charges of $141.3 million and a charge of $153.8 million to fully reserve for deferred tax assets. Net sales in 2002 were $1,036.2 million on shipments of 2,296,900 tons tons compared to net sales of $960.4 million on shipments of 2,231,400 tons in 2001. "Restarted and restructured domestic capacity combined with weakened industry fundamentals led to lower shipments and selling prices for sheet products than expected in the fourth quarter of 2002," said John H. Walker, president and chief executive officer. Total liquidity at Dec. 31, 2002, was $28.9 million compared to $46.1 million at Sept. 30, 2002. In a previous press release, the company announced a tentative contract agreement with the Independent Steelworkers Union and the Independent Guard Union, which affects 3,200 unionized employees. The proposed contract, if ratified, calls for a 5 percent pay decrease, a pension freeze, cancellation of a planned $1-an-hour wage increase set for April 1 and discussions in the near future on possible health care coverage changes. If the unionized work force ratifies the agreement, 530 management personnel will incur like compensation adjustments. In total, the company expects to reduce its operating costs by $38 million and possibly more as a result of additional cost reduction measures. The tentative contract also includes the issuance, in up to two tranches, of a maximum of 500,000 shares of exchangeable, redeemable Series D preferred stock to a qualified employee benefit trust for the benefit of current active employees of the company which will hold the shares until distributions are required to be made in accordance with its terms to company employees. The preferred stock is nonvoting, bears no dividend and is redeemable or exchangeable at the option of the company for cash or common stock at any time. Additionally, the preferred stock is mandatorily redeemable at March 1, 2015, or earlier upon the consummation of a significant transaction, subject to compliance with the company's outstanding debt. 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.
Weirton Steel Corp. Media Contact:
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