Rouge Industries, Inc. Reports Q1 Income
22 April 1998
Rouge Industries, Inc. Posts $4.1 Million First Quarter Net Income
DEARBORN, Mich., April 22 -- Rouge Industries, Inc.
reported net income of $4.1 million and earnings per share of
$0.19 for the first quarter of 1998. Steel product shipments totaled 728,000
tons, 2.2% lower than the first quarter of 1997. Raw steel production totaled
797,000 tons, 49,000 tons or 6.6% higher than the same period a year ago.
"With the second blast furnace reline now behind us, this is the first
quarter in the last nine that we have not supplemented our internal production
with purchased slabs to meet the demand for our steel products," said Carl L.
Valdiserri, chairman and chief executive officer. "The combined effect of the
blast furnace improvements and the new automated raw material handling system
has steadily improved our internal steel production rate and our March
performance allowed us to set all-time monthly and quarterly raw steel
production records."
"This improving production trend, together with a continued strong order
book and a replenished in-process inventory level, will help us to meet our
sales targets and earnings objectives going forward," concluded Valdiserri.
On April 1, Bing Blanking, L.L.C., the Company's joint venture with Bing
Management II, commenced production at a newly acquired facility in Dearborn,
Michigan. Bing Blanking produces rollformed frame parts and first operational
blanks for the automotive industry. By the end of May, the Company expects
that it will have launched Spartan Steel Coating, its new hot dipped
galvanizing joint venture.
Rouge Industries, Inc. is a producer of premium-quality flat rolled sheet
steel products. It principally serves the automotive, converter and service
center markets.
Safe Harbor Statement
This press release contains forward looking information about the Company.
A number of factors could cause the Company's actual results to differ
materially from those anticipated, including changes in the general economic
climate, the supply of or demand for and pricing of steel products in the
Company's markets, potential environmental liabilities and higher than
expected costs. For further information on these and other factors that could
impact the Company and the statements contained herein, reference should be
made to the Company's filings with the Securities and Exchange Commission.
ROUGE INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)
(Unaudited)
For the Quarter Ended
March 31
1998 1997
Total Sales $318,952 $334,172
Costs and Expenses
Costs of Goods Sold 301,239 313,603
Depreciation and Amortization 5,130 3,547
Selling and Administrative Expenses 5,925 5,585
Amortization of Excess of Net Assets
Acquired Over Cost (1,449) (1,449)
Total Costs and Expenses 310,845 321,286
Operating Income 8,107 12,886
Net Interest Income/(Expense) (374) 291
Other - Net (386) 370
Income Before Income Taxes and
Unconsolidated Subsidiaries 7,347 13,547
Income Tax Provision (2,212) (4,080)
Equity in Unconsolidated Subsidiaries (1,064) (183)
Net Income $4,071 $9,284
Earnings Per Share - Basic and Diluted $0.19 $0.42
Weighted Average Shares Outstanding 21,998 21,914
Shipments (000)NT 728 744
Raw Steel Production (000)NT 797 748
ROUGE INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
March 31 December 31
1998 1997
Assets
Current Assets
Cash and Cash Equivalents $9,565 $12,570
Accounts Receivable 132,409 111,466
Inventories 190,966 248,317
Other Current Assets 5,493 8,562
Total Current Assets 338,433 380,915
Net Property, Plant, and Equipment 270,943 268,562
Investment in Unconsolidated Subsidiaries 57,077 50,936
Deferred Charges and Other 27,869 28,096
Total Assets $694,322 $728,509
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $146,067 $166,841
Accrued Liabilities 36,708 36,898
Total Current Liabilities 182,775 203,739
Long - Term Debt - 17,900
Other Liabilities 59,548 56,969
Excess of Net Assets Acquired
Over Cost 9,831 11,280
Stockholders' Equity 442,168 438,621
Total Liabilities and
Stockholders' Equity $694,322 $728,509
SOURCE Rouge Industries, Inc.