BETHLEHEM STEEL ANNOUNCES
ORGANIZATIONAL CHANGES
Bethlehem Steel Corporation
For Immediate Release
BETHLEHEM, Pa., February 14, 2000 -- Bethlehem Steel Corporation (BS:NYSE) announced today that it will implement further actions to streamline its business Divisions and Corporate Offices in order to help restore profitability and increase stockholder value. Bethlehem said that it is instituting these actions to significantly improve production and administrative efficiencies and to lower costs. "We have many strengths that are competitive advantages," said Curtis H. Barnette, chairman and chief executive officer, "and by simplifying our organizational structure we can better use those strengths to enhance stockholder value while continuing to provide our customers the highest product quality and excellent services they expect and receive from Bethlehem."
Key changes to the organization involve consolidating three major flat rolled products Divisions - Burns Harbor, Sparrows Point and Bethlehem Lukens Plate - into two Divisions, and establishing a Shared Services unit and a smaller Corporate Center.
In consolidating the three business Divisions into two, the Bethlehem Lukens Plate operations at Conshohocken and Coatesville, including the administrative offices, will become part of the Sparrows Point Division, while BLP's 110" and 160" plate mills located at Burns Harbor will become operating units of that Division. Bethlehem explained that it had achieved all of the operating, administrative and other synergies expected from its acquisition of Lukens. With today's announcement, the company stated that even further cost synergies can now be achieved. Bethlehem will continue to market plate under the trade name of "Bethlehem Lukens Plate".
The Shared Services unit will consolidate various services that are now performed separately at the business Divisions and at the various Corporate Departments.
Bethlehem's president and chief operating officer, Duane R. Dunham, who will become Chairman, President and Chief Executive Officer in April, said, "We have made considerable progress in reshaping our company over the last few years; however, given the extremely competitive environment we now have and in which we expect to continue to operate, we must further increase the intensity of all of our actions and efforts so that we can derive the greatest value for our stockholders."
Van R. Reiner, president, Bethlehem Lukens Plate, will be responsible for implementing the plan to transition the plate operations at Conshohocken and Coatesville, including the administrative offices, into the Sparrows Point Division. Mr. Reiner will report to Carl W. Johnson, president, Sparrows Point Division, and to Mr. Dunham, during the transition period. Mr. Reiner will become president of the Sparrows Point Division upon Mr. Johnson's future retirement.
Bethlehem Steel is one of the nation's largest steel producers, and primarily manufactures and sells a wide variety of steel mill products.