Bethlehem Steel announces fourth quarter loss

Bethlehem Steel announces fourth quarter loss

The US Chapter 11 bankrupt firm Bethlehem Steel's recent financial reports released this week displays a reduction in the quarterly loss. The company recorded a loss of $429 million in the final quarter of year 2002, which is down by 21.6% from the previous year same period's loss of $547 million. Bethlehem's third quarter loss was much lower at $54 million, however such rise in Q4 is explained by rising costs and seasonality by the company officials. For the whole year of 2002, there is actually improved outlook in the outlook of loss. The company recorded a net loss of $700 million, down from the $1.9 billion loss of the previous year, mainly due to price improvements. The ongoing reports of loss are due to the legacy costs of pensions and retiree insurances, according to company officials. Currently Bethlehem is working on the offer placed by International Steel Group for a takeover of almost entire assets of the company. A decision by the board of directors is likely to come out on January 29, 2002.