ISG misses analysts' predictions, makes $94M in second quarter

CLEVELAND (AP) -- International Steel Group Inc. said Thursday that it had earned $94 million in the second quarter, compared with a loss of $27.5 million in the same period a year ago.
The results fell short of Wall Street's expectations, but the stock rebounded after the company and analysts predicted the nation's largest integrated steelmaker was poised for a stronger third quarter.
ISG shares closed up $1.75, or 5.5 percent, at $33.50 on the New York Stock Exchange.
The second-quarter profit largely reflected ISG's May 2003 acquisition of Bethlehem Steel in Pennsylvania, which more than doubled the size of the company. Higher steel prices also helped boost results.
Earnings per share rose to 92 cents on sales of $2.08 billion in the April-June period, compared with a loss of 37 cents a share on sales of more than $1 billion in the year-ago period. Analysts surveyed by Thomson First Call had predicted earnings of $1.25 per share.
Analyst Charles Bradford of Bradford Research said higher costs for raw materials and a lower volume of sales than expected could account for analysts' overestimate.