WCI lost money in the fourth quarter
WARREN — WCI Steel said today that it suffered a $1.1 million loss in the fourth quarter of last year and is completing a difficult first quarter.
Patrick Tatom, president of the Warren steelmaker, said in a conference call with industry analysts that market conditions were tough in the fourth quarter and the average selling price was down.
The company also took a one-time accounting charge of $1.3 million for costs related to a buyout program for salaried workers and recorded increased depreciation costs related to its equipment.
Tatom said the current quarter is "challenging" because the mill has had planned and unplanned outages at the mill, Tatom said. Also, prices for the steel they make have continued to fall, he said.
He added, however, that he thinks WCI is in a strong position. It has earned $15 million since it emerged from bankruptcy court protection May 1. Tatom noted that the company is completing two major capital improvement projects that will improve operations and make the company more profitable. He said other announcements on internal investments or acquisitions are expected by the end of the year.