Wheeling-Pittsburgh reports net loss for 2005

Flat rolled sheet producer Wheeling-Pittsburgh has announced their financial results for fiscal 2005. Net sales for 2005 totaled $1.56 billion, rising from 2004 net sales of $1.41 billion. The increase in net sales is attributed to an increase of the average selling price of the company's products. For net income, however, the company posted a net loss of $33.8 million, or $2.37 per diluted share. This compares to 2004 net income of $62.2 million, or $5.66 per diluted share. Wheeling-Pittsburgh CEO James G. Bradley explained the lackluster results: "Our 2005 results were adversely affected by a number of unusual items: namely, the lingering effects of the BOF ductwork collapse in December 2004, the startup of our new Electric Arc Furnace, and the failure of our primary coal supplier to perform under its supply contract, as well as by significant increases in the cost of raw materials and fuels." The company says they are continuing to work towards a resolution to the business interruptions caused by the ductwork collapse. Mr. Bradley says that the Electric Arc Furnace is now at 90 percent capacity, compared to the 73 percent capacity during the fourth quarter. Both of these facts have positive implications for the company's fiscal results for 2006. Wheeling-Pittsburgh is involved in the making, processing, and fabrication of hot rolled, cold rolled, galvanized, pre-painted, and tin mill sheet products, using integrated and electric arc furnace technology. The company also produces a variety of steel products including roll formed corrugated roofing, roof deck, floor deck, bridgeform, and other products used primarily by the construction, highway, and agricultural markets.