Geneva Steel reported a $3.4 million net income for its second fiscal quarter ended March 31.
Operating income for quarter was $16.4 million. Sales and steel shipped totaled $192.4 million and 523,800 tons, respectively.The recent earnings combined with a net loss in the first quarter amount to a profit of $700,000 for the first six months of the struggling company's fiscal year. Geneva reportedly lost $6.9 million during the same period last year.
Steel prices have increased about $7 a ton the past year. Shipments of plate and pipe products increased during the quarter, while demand for sheet and slab declined.
Earlier this month, company management and the United Steelworkers Local 2701 reached a tentative agreement. It includes improvement in wages, pensions and other benefits that will increase Geneva's labor costs in accordance with expected inflation.
"We believe the that the negotiations were constructive, and that we have jointly laid the groundwork for achieving several important objectives necessary to becoming more competitive as a company," said Joe Cannon, chairman and chief executive officer.
The proposed contract must be ratified by rank-and-file workers, the international steelworkers union and Geneva's executive board.