Geneva Steel has reported fourth-quarter net income of $10.3 million, down 34 percent from the same time last year when earnings reached $15.7 million.
As of Aug. 31, sales and tons shipped for the fourth quarter totaled $130.1 million and 360,000 tons, respectively. That compares to $142.5 million and 361,000 tons in the same quarter of fiscal 1989.Geneva President Joseph Cannon said the drop in net income was due to a "softening of demand" for the company's product that forced lowering of prices to match competitors and maintain production volumes.
For the year ending Aug. 31, net income was $41.6 million on sales of $517 million, compared to net income of $56.1 million on sales of $521.8 million in fiscal 1989.
"Although net income for the current fiscal year is below that of fiscal year 1989, net income was above what was anticipated by the company," Cannon said. "In addition, steel tons shipped exceeded the prior fiscal year."
Throughout fiscal 1990, the company has been implementing a modernization program affecting Geneva's steelmaking, casting and rolling facilities.
Geneva owns the only integrated steel mill operating west of the Mississippi River. The Orem plant makes hot rolled sheet metal, plate and other products for sale primarily in the Western and Central United States.