Wheeling-Pittsburgh falters in Q3

Wheeling-Pittsburgh falters in Q3

Flat rolled steel producer Wheeling-Pittsburgh Corporation (WP) reported its net sales for the third fiscal quarter were down, largely due to rising cost of raw materials and weak steel prices. WP reported net sales were $375 million, down from the third quarter 2004 net sales figure of $402 million. Year-to-date 2005 net sales were $1.19 billion compared to $1.03 billion for the same period in 2004. The company experienced a net loss for the third quarter 2005 of $21.1 million, or $1.47 per diluted share. This compares to a net income of $35.5 million, or $3.42 per diluted share, for the third quarter 2004. WP experienced a net loss for the nine months ended September 30, 2005 of $10.4 million, compared to a year-to-date net income of $55.9 million for the same period last year. Wheeling-Pittsburgh chairman and CEO James G. Bradley said, "Results for the third quarter were adversely affected by falling steel prices and high or increasing raw material costs. We did, however, consummate the coke plant joint venture late in the third quarter, which will provide sufficient funding to completely rebuild the coke plant facility so that we will remain self-sufficient with respect to our coke needs. Completion of the joint venture also allowed us to repay our revolver and together with the liquidity enhancement increased our liquidity to $168 million at the end of the third quarter." Looking forward, the company warned, "We may not be able to satisfy certain financial covenants under the term loan agreement in the future." Headquartered in Wheeling, West Virginia, Wheeling-Pittsburgh is a steel company which produces, processes and fabricates steel and steel products with both integrated and electric arc furnace technology. Products include hot and cold rolled sheet and coated products, as well as construction, highway, and agricultural materials.