Wheeling-Pitt stock nosedives

Wheeling-Pitt stock nosedives

Despite reversing a loss from last year and posting an $8.1 million profit, Wheeling-Pittsburgh Corporation’s (WP) stock plummeted 28% on reduced earnings in quarter one 2005. WP has seen a plethora of news coverage recently – most notably for a tumultuous relationship with its coal supplier Central West Virginia Energy Company and a ductwork collapse at its Mingo Junction Plant in December – and recently emerged from bankruptcy in August 2003. WP had previously reported earning of $35.6 million in Q3 2004 and $27.1 million in Q2. WP took a earnings hit in the final quarter of 2004 due to the Mingo Junction accident, which forced them to shutdown operations for 12 days. The shutdown is said to have cost them $23 million. Investor jitters may be a sign that they do not have confidence in WP’s future. WP cites higher raw materials costs as the primary reason for its slim earnings – a sentiment echoed throughout much of the rest of the industry.