Geneva Steel on Friday reported a net loss of $13.94 million for the second fiscal quarter, ending March 31, 1994, which included financing costs of $9.26 million. The net loss applicable to common shares was $1.04.
This compares with a net loss of $4.57 million, or $.32 per common share for the same period last year. The operating loss for the quarter was $3.75 million compared with an operating loss of $3.21 million for the same quarter last year. Sales and tons shipped during the quarter were $121.12 million and 375,000 tons respectively, compared with $115.54 million and 388,000 tons last year.For the six-month period that ended March 31, 1994, the company reported a net loss of $12.23 million, or a loss applicable to common shares of $1.04. This compares with a net loss of $8.51 million, or a $.58 loss per common share, for the same period last year.
The net loss for the second quarter included extraordinary financing costs of $9.26 million, which consisted largely of contractual prepayment premiums associated with the refinancing of certain debt in connection with the company's recently completed Senior Note offering.
According to Geneva Steel representatives, the operating loss was due primarily to production inefficiencies associated with construction of various capital projects and to increased iron-making costs due to reconditioning work at the blast furnace operation.
The transition costs associated with capital projects are expected to continue through the current quarter and decline as the projects are fully implemented. The company believes that ironmaking costs will decline as reconditioning work is completed, throughput increases and the company moves to a lower-cost coal blend.