For the three months ended June 30, 2010, US Kentucky-based ALJ posted net income of $4,490,263 as compared to a net loss of $934,192 for the three months ended June 30, 2009. ALJ is the parent company of KES Acquisition Company (dba Kentucky Electric Steel), the owner and operator of a steel mini-mill near Ashland, Kentucky producing both merchant bar quality flats (MBQ Bar Flats), and special bar quality steel flats (SBQ Bar Flats).
According to John Scheel, ALJ's Chief Executive Officer, "Thus far, 2010 has been similar to 2009. Shipments and selling prices this year are down 4 percent and 2 percent, respectively compared to 2009. This is reflective of the slow, fragile nature of the economic recovery. The quarterly results, however, show a somewhat different perspective as there really has been a good deal of volatility in both volumes and prices. Overall, KES has been able to be solidly profitable throughout 2010; so much so that we were able, this quarter, to pay off our outstanding senior term loans and to refinance our remaining senior debt enabling us to also retire significant high-interest-rate subordinated debt at a sizable discount. Our financials reflect a one-time gain of about $4 million as a result."