Bob and all - Here are quarter earnings.
STELAX INDUSTRIES, LTD. ANNOUNCES
IMPROVED SALES FOR THIRD QUARTER AND NINE MONTHS.
Dallas, Texas, February 17, 1998 - STELAX INDUSTRIES, LTD. (OTCBB Symbol: "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.
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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. |
