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Non-Tech : Oregon Steel Mills (OS:NYSE) Boom or Bust? -- Ignore unavailable to you. Want to Upgrade?

To: June who wrote (8)	1/30/2000 6:16:00 PM
From: John Madarasz	Read Replies (2) \| Respond to of 21

Portland steel-maker sees stock drop 22% Oregon Steel Mills drastically cuts its dividend and reports a fourth-quarter loss, sending its shares to a 52-week low Saturday, January 29, 2000 By Steve Woodward of The Oregonian staff Oregon Steel Mills Inc. watched its stock swoon nearly 22 percent to a 52-week low Friday, after the Portland steel-maker surprised Wall Street by slashing its dividend and announcing a fourth-quarter loss. The loss and stock dip capped a tumultuous year for Oregon Steel, which makes steel plate, pipe and tubing in its Oregon Steel Division, and rail, wire rods and bars at its Rocky Mountain Steel Mills Division. Last year saw continuing battles with the United Steelworkers of America, a changing of the guard in top management and the adoption of a "poison pill" defense against hostile takeovers. Oregon Steel cut its quarterly dividend to 2 cents a share, after distributing 14 cents a share to shareholders for 33 consecutive quarters. In the year's final quarter, which ended Dec. 31, price decreases, a shift to lower-margin products and a slowdown in production saddled Oregon Steel with a loss of $2.02 million, or 7 cents a share. Wall Street expected the company to earn 12 cents a share, according to Zacks Investment Research. In 1998, the company lost 17 cents a share in its fourth quarter. Sales for the final three months of 1999 were $187.13 million, a 1.2 percent increase from $184.84 million a year earlier. By the close of the New York Stock Exchange on Friday, Oregon Steel shares had fallen $1.1875 a share, closing at $4.25 a share. After a 90-minute trading halt at the beginning of the day, more than a quarter-million shares quickly changed hands at $3.375 a share before the price bobbed up over the $4 level. For the year, Oregon Steel earned $19.91 million, or 76 cents a share, on sales of $821.98 million. That was a significant improvement from the previous year, when the company earned $11.93 million, or 45 cents a share, on sales of $892.58 million. But Wall Street had expected 1999 earnings of 89 cents a share, according to Zacks. In a statement, Joe E. Corvin, who on Jan. 1 succeeded Thomas B. Boklund as president and chief executive officer, said Oregon Steel had taken steps to combat the industry's cyclical nature. "We intend to become a dominant domestic player in specialty plate markets and significantly increase our participation in specialty rod markets," he said. oregonlive.com Tough to say if this is the buy opp here, maybe a climax bottom that could be bought on a re-test... Regards, John Madarasz