Slater Steel Reports Quarterly Numbers

Slater Steel Inc. reported a loss from continuing operations of $44.5 million for the three months ended June 30, 2003, compared to earnings from continuing operations of $1.5 million in the second quarter of 2002. The net loss for the second quarter 2003 was $44.5 million versus net earnings of $3.3 million in the corresponding quarter a year ago.

A number of factors contributed to the second quarter loss, which is primarily related to the company's stainless steel segment, including weak demand for stainless steel bar and soft product pricing, as well as increased input costs, including nickel, scrap, natural gas and electricity. These factors gave rise to a $9.0 million provision for stainless steel inventories which had manufactured costs in excess of net realizable values.

For the six months of 2003, the company reported a loss from continuing operations of $53.3 million versus earnings from continuing operations of $0.8 million in the comparable period a year earlier. The net loss for the six-month period was $53.3 million, compared to net earnings of $3.9 million in the prior year period. Second quarter and year-to-date 2002 earnings from discontinued operations is related to the results of Renown Steel, which was sold in the second quarter of 2002.

"Slater is taking immediate action to stem the losses in its stainless bar operations," said Paul A. Kelly. "To improve the economics of the stainless bar business, we are downsizing the stainless bar operations to what we believe is a competitively and financially viable market position".

Slater Steel is a mini mill producer of specialty steel products. The company's mini mills are located in Fort Wayne, Indiana, Lemont, Illinois, Hamilton and Welland, Ontario and Sorel-Tracy, Quebec.