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EXHIBIT 99.1
[LETTERHEAD OF NATIONAL STEEL]
NEWS RELEASE
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Media Contact: Clarence J. Ehlers
(219) 273-7327
Analyst and Joseph A. Rainis
Investor Contact: (219) 273-7158
NATIONAL STEEL REVISES OUTLOOK FOR SECOND QUARTER
Mishawaka, IN, June 20, 2000 - National Steel Corporation (NYSE: NS) today
announced that its second quarter 2000 financial results will be well below
current estimates made by the analyst community and are expected to be a loss in
the range of $15-20 million, equivalent to $0.36 to $0.48 per common share.
This loss excludes a potential gain on the sale of an asset in the amount of
approximately $10-13 million.
Revenues will be below earlier forecasts due to lower shipments and a poorer
product mix than previously anticipated. Higher customer inventory levels and
lower production levels due to extended outages have negatively impacted
volumes. In addition, higher import levels have negatively impacted shipments
and pricing. According to the American Iron and Steel Institute, imports
through April of this year versus the same period last year were higher by
nearly 30% in total and higher by 102% for galvanized sheet and strip and 80%
for hot rolled sheet.
A number of items have negatively impacted cost performance for the second
quarter. A planned hot strip mill outage at Granite City Division to prepare
for the installation of roll bending equipment was extended by eight days due to
machining delays to the finishing stands. Additionally, a hydraulic fluid fire
at one of the casters at Great Lakes caused some damage to electrical wiring,
which curtailed operations for six days. Both facilities are currently in
operation. While these operating cost issues have impacted the second quarter,
the problems associated with these outages have been largely resolved and should
not affect earnings in future quarters.
All statements contained in this release, other than historical information, are
forward-looking statements. A variety of factors could cause business
conditions and the Company's actual results and experience to differ materially
from those expected by the Company or expressed in the Company's forward-looking
statements. Additional information concerning these factors is available in the
Company's most recent Form 10-K for the year ended December 31, 1999.
Headquartered in Mishawaka, Indiana, National Steel Corporation is one of the
nation's largest producers of carbon flat-rolled steel products, with annual
shipments of approximately six million tons. National Steel employs
approximately 9,200 employees. Visit National Steel's website at:
www.nationalsteel.com.
