Things are really beginning to look up
BAYOU STEEL CORPORATION THIRD QUARTER FISCAL 1997
RESULTS
LAPLACE, La., Aug. 4 /PRNewswire/ -- Bayou Steel Corporation (Amex:
BYX) today reported a consolidated net income for the third quarter of
fiscal 1997 (ended June 30, 1997) of $2.1 million, or $0.15 per share,
compared to a net income of $0.2 million, or $0.02 per share, for the
same period of fiscal 1996. During the first nine months of fiscal
1997, the Company reported a net income of $1.1 million, or $0.08 per
share, before dividends and accretion on preferred stock, compared to a
net income of $0.4 million, or $0.03 per share, for the same period of
fiscal 1996. The improvement in earnings for the third quarter was due
to higher selling prices and lower production costs. The year to date
improvement in earnings was due to selling more Louisiana product at a
higher selling price while operating performance at the Tennessee
facility improved significantly.
"Selling prices at our Louisiana facility increased $13 per ton and our
backlog continues to grow to record levels. Our recently implemented
productivity incentive plan has resulted in an 8% increase in rolling
mill production which reduced our fixed cost per ton," said Jerry
Pitts, President and Chief Operating Officer. "Our recently developed
shredder business, which produces a high grade of scrap for our melting
facility and is a division of Bayou Steel Corporation, achieved record
conversion cost and productivity levels which led to cost savings of
approximately $250,000 in this quarter alone. We are excited about our
shredder operation and continue to seek additional opportunities to
expand our scrap preparation business," added Pitts.
Regarding the Tennessee rolling mill, Pitts said, "Our Tennessee
operation achieved a milestone by posting its first monthly profit
during the third quarter." He added that during this period there were
major mechanical problems which affected cost and productivity. "We
addressed these problems as well as performed annual maintenance on the
equipment during a one week planned shutdown at the end of the third
quarter. Our operating results nevertheless improved by nearly $1.0
million in the third quarter compared to the prior year due to an
increased acceptance of Tennessee products in the market, a better mix
of products shipped, and a stronger market. We expect the performance
of the Tennessee operation to continue to improve," added Pitts.
Reporting on short-term expectations, Pitts added, "Bayou Steel moves
into the fourth quarter with a record backlog and we look forward to a
strong shipment quarter with stable prices. The Tennessee operating
performance should continue to progress as we move steadily toward
profitability and our Louisiana operation should continue to be a solid
performer. As a result, we expect another good quarter as we
concentrate our full attention on the ongoing strategic business
issues, cost reduction, product mix optimization, and market
penetration."
Bayou Steel Corporation operates a steel minimill which produces light
structural steel products. Located on the Mississippi River in
LaPlace, Louisiana, the Company operates three stocking locations along
the inland waterway system near Pittsburgh, Chicago, and Tulsa. Its
wholly owned subsidiary, Bayou Steel Corporation (Tennessee), operates
a technologically advanced rolling mill where rebar and merchant bar
are produced. The common stock of Bayou Steel Corporation is traded on
the American Stock Exchange under the symbol "BYX".
FINANCIAL HIGHLIGHTS
(In Thousands, Except Per Share Data)
(Unaudited) (Unaudited)
Third Quarter Nine Months Ended
June 30, June 30,
1997 1996 1997 1996
Net Sales $ 59,075 $ 58,875 $171,593 $152,183
Gross Profit 7,157 4,214 15,122 11,916
Operating Income 4,396 2,292 7,813 6,232
Net Income 2,113 222 1,113 418
EPS $ 0.15 $ 0.02 $ 0.08 $ 0.03
Shape Shipment Tons 165,204 165,390 493,883 430,041
Billet Shipment Tons 241 11,132 241 13,040
Internet News Bureau: More information about Bayou Steel
Corporation is available at prprnet.com on the
World Wide Web.
SOURCE Bayou Steel Corporation
-0- 08/04/97 /CONTACT: Financial: Richard
J. Gonzalez, CFO, of Bayou Steel Corporation, 504-652-4900, email:
bayoufna@communique.net ; or Media: Charles Pizzo, Jr., Bayou Steel
Corporation Agent, of P.R. PR, Inc., 504-525-777, or pager,
800-617-5707/
(BYX)
CO: Bayou Steel Corporation ST: Louisiana IN: MNG SU: ERN |
