NORTH AMERICA HEADLINESNorth America
ALJ Announces 3rd Quarter Earnings
Aug. 18, 2010 ALJ, the parent company of Kentucky Electric, reported net income of $4.49 million on net sales of $30.97 million for the third quarter, and net income of $5.22 million on net sales of $80.45 million for the nine months ended June 30, 2010.
The $4.49 million net income ($0.09 per share) compares to a net loss of $934,000 (loss of $0.02 per share) for the year-ago third quarter. Net sales of $30.97 million compare to net sales of $19.38 million in the year-ago third quarter.
Nine-month net income of $5.22 million ($0.10 per share) compares to a net loss of $1.07 million (loss of $0.02 per share) for the comparable year-ago period. Net sales of $80.45 million compare to net sales of $85.78 million for the comparable year-ago ago period.
“Thus far, 2010 has been similar to 2009,” commented John Scheel, ALJ’s Chief Executive Officer. “Shipments and selling prices this year are down 4% and 2%, respectively compared to 2009. This is reflective of the slow, fragile nature of the economic recovery.
“The quarterly results, however, show a somewhat different perspective as there really has been a good deal of volatility in both volumes and prices.
“Overall, KES has been able to be solidly profitable throughout 2010; so much so that we were able, this quarter, to pay off our outstanding senior term loans and to refinance our remaining senior debt enabling us to also retire significant high-interest-rate subordinated debt at a sizable discount,” added Scheel. “Our financials reflect a one-time gain of about $4 million as a result.”
ALJ is the parent company of KES Acquisition Co., which does business as Kentucky Electric Steel, the owner and operator of a steel minimill near Ashland, Ky., producing both merchant bar quality (MBQ) flats, and special bar quality (SBQ) steel flats.