HUNTCO INC.
14323 SOUTH OUTER FORTY - SUITE 600N
TOWN & COUNTRY, MISSOURI 63017
NEWS RELEASE
FOR IMMEDIATE RELEASE:
HUNTCO COMMENTS ON STOCK PRICE
TOWN & COUNTRY, MISSOURI, August 2, 2000 . . . . . Huntco Inc. (NYSE: "HCO"),
an intermediate steel processor, Robert J. Marischen, Huntco's President and
Chief Executive Officer, issued the following statement in response to current
market activity in the Company's Class A Common Stock.
Current market trades in our stock have been below $2.00 per share, or less
than 20% of book value per common share, which was $11.04 at June 30, 2000.
Notwithstanding the current market environment, which was discussed in the
Company's news release on July 31, 2000, trading activity at such a severe
discount to book value appears to be driven by concerns about the Company's
solvency, which concerns I believe are unfounded.
Huntco Inc. generated positive cash flow from operations of over $2,000,000
during the second quarter of 2000 and is poised to generate positive cash flow
between now and the end of 2000. Considering the recent downturn in steel
prices, the Company's inventory position is the best it has been in several
years and we expect to further reduce our investment in inventory by
approximately 20% between now and year end. Further, we are evaluating the
sale of certain assets that have not yielded adequate financial returns and
expect to consummate the sale of such assets between now and December 31,
2000. I expect that these asset sales will be at amounts no less than book
value and that such sales will reduce our debt obligations and increase our
availability under our existing credit line.
I am optimistic concerning the prospect for improved operating performance as
the second half of 2000 progresses and believe that Huntco Inc. will be well
positioned for profitable operations as we move into 2001.
This press release contains certain statements that are forward-looking and
involve risks and uncertainties. Words such as "expects," "believes," and
"anticipates," and variations of such words and similar expressions are
intended to identify such forward-looking statements. These statements are
based on current expectations and projections concerning the Company's plans
for 2000 and about the steel processing industry in general, as well as
assumptions made by Company management and are not guarantees of future
performance. Therefore, actual events, outcomes, and results may differ
materially from what is expressed or forecasted in such forward-looking
statements. The Company encourages those who make use of this forward-looking
data to make reference to a complete discussion of the factors which may cause
the forward-looking data to differ materially from actual results which is
contained in the Company's Form 10-K for the year ended December 31, 1999.
Huntco Inc. is a major, intermediate steel processor, specializing in the
processing of flat rolled carbon steel.
