Stelax Industries, Ltd. Announces Improved Sales for Third Quarter and Nine Months
PR Newswire, Tuesday, February 17, 1998 at 18:16
DALLAS, Feb. 17 /PRNewswire/ -- Stelax Industries, Ltd.
(BB: STAX), announces financial results for the third quarter
and nine months ended December 31, 1997.
Net sales for the third quarter ended December 31, 1997, increased to
$636,920, as compared to $214,926 for the same period in 1996. Net sales for
the nine months ended December 31, 1997, increased to $2,485,307, as compared
to $306,376 for the same period in 1996. Net loss for the third quarter ended
December 31, 1997, was $879,703, ($.03 per share), as compared to $700,329,
($.02 per share) for the same period in 1996. Net loss for the nine months
ended December 31, 1997, was $2,728,689, ($.09 per share), as compared to
$1,376,352 ($.05 per share) for the same period in 1996.
The Company shows a net worth of $12.5 million, $14.5 million in total
assets and $1.9 million in total liabilities.
The Company originally produced solid stainless steel to satisfy three
objectives: to commission the plant in Wales, UK; to build a production
infrastructure; and, to achieve positive cash flow while building a market for
NUOVINOX. The Company has satisfied the first two objectives, it was not able
to achieve positive cash flow due to the dramatically reduced prices of
stainless steel. As a result, management of the Company has decided to phase
out of the solid stainless steel business and concentrate on NUOVINOX, which
the Company has an ever increasing backlog.
Harmon Hardy, CEO and President, said, "The lower solid stainless steel
prices created by the collapse of the Asian economy enhances the Company's
position in NUOVINOX, a lower price alternative to solid stainless steel."
Mr. Hardy continued, "Since stainless steel accounts for approximately 20% of
the content and 80% of the price of NUOVINOX, the lower prices of stainless
steel has opened up new market opportunities for NUOVINOX. The Company can
compete with galvanized and coated products more competitively and will make
Stelax's rebar products more economically acceptable.
"We feel confident the redirection of our operational activities will
accelerate the Company's establishment within the market for NUOVINOX. We
believe the Company's decision will significantly improve the Company's
financial performance and cash flow."
Headquartered in Dallas, Texas, STELAX Industries' main activity is a
specialized steel mill located in South Wales (United Kingdom). It
manufactures and markets a patented stainless steel alternative known as
NUOVINOX, a carbon steel product which is cladded with stainless steel.
STELAX Industries, Ltd.
Third Quarter Ended December 31, 1997
Third Quarter Nine Months
1997 1996 1997 1996
Sales $ 636,920 $ 214,926 $ 2,485,307 $ 306,376
Net Income (loss) (879,703) (700,329) (2,728,689) (1,376,352)
Net Income (loss)
per share (0.03) (0.02) (0.09) (0.05)
Weighted Average
Shares Outstanding 31,869,285 --- 31,869,285 ---
Please visit Stelax Industries, Ltd. Web Site: www.stelax.com.
The information provided in this Press Release contains forward looking
statements that involve risks and uncertainties. Statements made in this
Press Release that are not historical facts are forward looking statements
that are subject to the safe harbor created by the Private Securities
Litigation Reform Act of 1995. The Company's actual results could differ
significantly from those discussed herein.
SOURCE Stelax Industries, Ltd.
-0- 02/17/98
/CONTACT: Harmon Hardy, CEO and President of Stelax Industries Ltd.,
972-233-6041; or Jim Drewitz, Investor Relations of Creative Options
Advertising, 817-430-3131, for Stelax Industries Ltd./
Companies or Securities discussed in this article:
Symbol Name
BB:STAX Stelax Industries Ltd |
