Slater Steel Reports Loss

Slater Steel Inc. reported net earnings of $487,000 for the year ended December 31. This compares to net earnings of $9.2 million during the same time the previous year. For fiscal 2002, the company recorded a loss from continuing operations of $2.6 million versus earnings from continuing operations of $5.4 million.

"Although Slater's 2002 financial performance was negatively impacted by the sluggish economy and high levels of imports, we continued to take steps to strengthen the company's long term competitive position," said Paul Kelly, president and CEO, Slater Steel Inc. "We continued to aggressively manage controllable costs and focus on optimizing our core steel making assets which led to the divestiture of Renown Steel, a non-core asset, and the acquisition of Slater Lemont, which provides the company with a strategic and cost effective platform for growth."

Consolidated sales for the year were $691.9 million, compared to $705.3 million the previous year. For the last quarter of the year consolidated sales were $162.6 million, compared to $166.1 million in the corresponding period a year earlier.

The company also noted that currently, rising commodity costs - specifically natural gas, nickel, scrap and electricity, all key inputs in the steel making process - are increasingly impacting Slater Steel's liquidity. The company also said that it is negotiations with lenders regarding the refinancing of its debt.