Geneva Steel reported Tuesday net income of $4.3 million or 29 cents per share for its second fiscal quarter ending Feb. 28, down 41 percent from $7.3 million, or 63 cents per common share for the same quarter last year.
For the first six months of fiscal 1991, Geneva reported net income of $11.4 million or 76 cents per common share, down 40 percent from $19.1 million or $1.64 per common share for the first six months of the previous year."Economic conditions in the United States have created a low demand for steel products which has resulted in lower prices for steel throughout the industry," said Joseph A. Cannon, president and chief executive officer.
Sales and tons shipped for the quarter reached $117.4 million and 330,000 tons respectively, down from $121.1 million and 326,000 tons during the same quarter last year.
In addition to low steel prices, Cannon said second quarter 1991 net income was also affected by moderately higher contractual costs of labor and raw materials and increased costs associated with the operation of the new biological wastewater treatment plant.
In addition, Cannon said net income for second quarter was affected by an increase in material costs attributed to using a larger portion of higher-cost iron ore pellets in place of iron ore from southern Utah as done periodically to improve efficiency in the blast furnace operation.