Summarized by Kent Larsen
Geneva's net plummets
Deseret News 22Dec99 B4
By Frank Curreri: Deseret News staff writer
VINEYARD, UTAH -- Financially troubled Geneva Steel suffered another
setback last year, as it lost $63.5 million in the three months ended
September 30, 1999. The steel maker, which is run by and employs many
members of the LDS Church, is trying to emerge from Chapter 11
bankruptcy proceedings and return to profitability.
A large part of the loss -- $38 million -- are costs associated with the
bankruptcy case. Geneva has fought to keep from being liquidated as well
as fighting against foreign steel it says is being dumped into U.S.
The rest of the results are due to sales, also off due to foreign
competition. Geneva has sold just $315 million during this fiscal year
compared to $720 million in the previous fiscal year.
However, company officials are optimistic due to recent improvements in
steel prices and less foreign competition. They say that trade cases and
government involvement are slowly improving sales. Geneva says that it
has twice increased its steel prices in the past three months.