BETHLEHEM STEEL ANNOUNCES FOURTH QUARTER 1997 RESULTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- Segment Results (dollars in millions):
|
|
|
(unaudited) |
|
|
|
1997 |
1996 |
|
|
|
Fourth |
Third |
|
Second |
First |
|
Fourth |
|
|
|
Quarter |
Quarter |
|
Quarter |
Quarter |
|
Quarter |
| Net Sales: |
|
|
|
|
|
|
|
|
|
|
|
| Basic Steel Operations |
|
$ |
1,115.3 |
$ |
1,109.4 |
$ |
1,188.7
|
$ |
1,174.3
|
$ |
1,126.4
|
| Steel Related Operations |
|
|
5.0 |
|
10.0 |
|
26.8 |
|
27.0 |
|
32.6 |
| Eliminations |
|
|
(1.9) |
|
(6.0) |
|
(8.6) |
|
(8.8) |
|
(10.0) |
|
|
Total |
$ |
1,118.4 |
$ |
1,113.4 |
$ |
1,206.9
|
$ |
1,192.5
|
$ |
1,149.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Gain (Loss) on
Exiting Businesses: |
|
|
|
|
|
|
|
|
|
|
|
| Basic Steel Operations |
|
$ |
- |
$ |
- |
$ |
135.0 |
$ |
- |
$ |
(240.0) |
| Steel Related Operations |
|
|
- |
|
- |
|
- |
|
- |
|
(210.0) |
|
|
Total |
$ |
- |
$ |
- |
$ |
135.0 |
$ |
- |
$ |
(450.0) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
| Basic Steel Operations |
|
$ |
57.2 |
$ |
66.0 |
$ |
212.1 |
$ |
63.8 |
$ |
(193.0) |
| Steel Related Operations |
|
|
- |
|
(7.5) |
|
(10.1) |
|
(7.5) |
|
(217.5) |
|
|
Total |
$ |
57.2 |
$ |
58.5 |
$ |
202.0 |
$ |
56.3 |
$ |
(410.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shipments |
|
|
|
|
|
|
|
|
|
|
|
| (thousands of net tons): |
|
|
|
|
|
|
|
|
|
|
|
| Basic Steel Operations |
|
|
2,149 |
|
2,183 |
|
2,238 |
|
2,220 |
|
2,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Raw Steel Production |
|
|
|
|
|
|
|
|
|
|
|
| (thousands of net tons): |
|
|
|
|
|
|
|
|
|
|
|
| Basic Steel Operations |
|
|
2,403 |
|
2,417 |
|
2,462 |
|
2,317 |
|
2,412 |
- In December 1997, we announced plans to
discontinue our Bethlehem Coke Division operations by March 31, 1998. As part of our 1996
Restructuring Plan, we wrote off the plant and equipment of the Division as an impaired
asset. The 1996 restructuring charge assumed that our BethForge, CENTEC and BethShip
businesses would be shut down and liquidated. Fortunately, we were able to sell those
businesses. Also, because of a recent agreement with the USWA, we can offer employment at
our Sparrows Point Division and our Lackawanna Coke operation to certain potential early
retirees from the Bethlehem Plant operations. Accordingly, the charges recognized in prior
years are expected to be sufficient to cover the employment and other related
restructuring charges for closing the Bethlehem Coke Division.
- We sold our 37.57 percent interest in the
Iron Ore Company of Canada for about $145 million. This sale resulted in recognizing a
pretax gain of $135 million in the second quarter of 1997.
We completed the sales of Steel Related Businesses during the
third and fourth quarters of 1997 completing implementation of our 1996 Comprehensive
Restructuring Plan.
Additionally, our HPM coal operation was
sold to Power Mountain Coal Company in the fourth quarter of 1997.
- In the second quarter of 1997, Bethlehem,
through its wholly owned special purpose subsidiary, amended its existing non-reducing
credit facility with 13 domestic and international banks. The amendment extends the term
of the arrangement by about two years, through September 12, 2002, and increases the
facility's inventory credit arrangement from $200 million to $225 million. The facility's
receivable purchase agreement remains at $300 million, for a total of $525 million.
- In the fourth quarter of 1997, we adopted
Financial Accounting Standards Board Statement No. 128 Earnings per Share. Statement No.
128 establishes new standards for computing and presenting earnings per share (EPS). It
replaces the presentation of primary EPS with basic EPS and requires dual presentation of
basic and diluted EPS. All prior-period EPS data has been restated to conform with
Statement No. 128.
- The Consolidated Financial Statements as of
and for the three month periods ended December 31, 1997 and 1996 and the year ended
December 31, 1997 have not been audited. However, the information reflects all adjustments
which, in the opinion of management, are necessary to present fairly the results shown for
the periods indicated. Management believes all adjustments were of a normal recurring
nature.
- These Consolidated Financial Statements
should be read together with the 1996 audited financial statements set forth in
Bethlehem's Annual Report on Form 10-K filed with the Securities and Exchange Commission.
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