SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.
Date of Report (Date of earliest event reported) July 19, 1994.
WEIRTON STEEL CORPORATION
_________________________
(Exact name of registrant as specified in its charter)
Delaware 1-10244 06-1075442
__________________________________________________________________
(State of other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
400 Three Springs Drive, Weirton, WV 26062
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Address of principal executive officer) (Zip Code)
Registrant's telephone number, including area code 304-797-2000
__________________________________________________________________
Item 5. Other Events
The Registrant issued a press release July 19, 1994 pursuant
to an Item 5 disclosure. See Exhibit 1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Ace of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
WEIRTON STEEL CORPORATION
/s/William R. Kiefer
William R. Kiefer
July 19, 1994
Exhibit 1.
FOR IMMEDIATE RELEASE
Weirton, WV, July 19, 1994 - Weirton Steel Corporation
(NYSE: WS) today reported a second quarter net income of $18.6
million, or $.63 per share compared to a net loss of $11.4 million,
or $.46 per share for the same period last year.
The Company's operating and net results for the second quarter
were affected by a fire on April 6 that extensively damaged its No.
9 Tandem Cold Rolling Mill. A second quarter operating profit of
$2.9 million reflected lower shipments of tin mill products and
higher operating costs caused by the tandem mill outage. Under
current accounting rules, certain property damage insurance
recoveries associated with events of this type result in the
recognition of a new cost basis for the rebuilt facility and the
requirement to recognize a gain. Based upon the nature of the
recoveries associated with the damage to the tandem mill, the
Company recognized in the second quarter a pre-tax gain of $32.5
million. Without the gain recognition, second quarter net results
would have been reduced to a net loss of $7.7 million.
Net sales in the second quarter increased 11.4% to $335.5
million from $301.3 million in last year's second quarter on
shipments of 702,000 tons. This tonnage increase represented an
increase of 12.5% over last year's second quarter shipments of
624,000 tons. Demand for the Company's sheet products remained
strong and pricing was firm in the 1994 second quarter. Tin Mill
Product shipments declined as a result of the tandem mill outage.
Based upon current market conditions for the Company's
products, in the absence of the damage to the tandem mill, the
Company believes its operating and net results for the second
quarter would have been better than first quarter results.
"Because of improved operational flexibility attributable to
our modernized facilities, we were able to shift our product mix to
minimize the effects of the damage to our tandem mill," stated
Herbert Elish, President and CEO.
For the first half of 1994, the Company reported net income of
$21.5 million or $.70 per share compared to a loss before the
effect of accounting changes for the first six months of 1993 of
$43.4 million. The 1993 period also included a pre-tax
restructuring charge of $17.3 million. Without the gain recognized
in the second quarter of 1994, net results for the first six months
of 1994 would have been reduced to a net loss of $4.9 million.
The Company's operating profit of $19.4 million through the
second quarter of 1994 continued to demonstrate a trend of improved
operating performance. Notwithstanding the adverse effects of the
tandem mill outage, the Company's 1994 operating results compared
favorably to the first six months of 1993 when the Company had an
operating loss of $1.8 million, before a restructuring charge.
Sales for the first six months of 1994 were $660.7 million, an
increase of 10.3% from $599.1 million in the prior year period.
Reflective of the strength of the market for sheet products
shipments of 1,358,000 tons increased 10.2% over the 1,232,000 tons
shipped in 1993's first half.
"We should experience improved operating performance in the
third quarter," added Elish. "Start-up of the rebuilt tandem mill
is scheduled for mid October, and full production should resume
during the fourth quarter. We are pleased that demand for sheet
products continues to be strong, and we are well positioned to take
advantage of that market strength."
On May 26, Weirton Steel Corporation's stockholders approved
a proposal to increase the amount of the Company's authorized
common stock by 20 million shares and to change certain provisions
of the Company's Charter and By-Laws concerning the composition of
its Board. The Company intends to issue up to 15 million of the
newly authorized common shares in a public offering. Proceeds of
the offering will be used to reduce the Company's financial
obligations. A registration statement covering the offering has
been filed with the Securities and Exchange Commission.
Weirton Steel Corporation operates an integrated flat rolled
steel producing plant in Weirton, WV.
