Wheeling-Pittsburgh Suffers Major Loss

Wheeling-Pittsburgh Steel reported losses of $50.1 million for the second quarter, including a non-recurring loss of $28.7 million. Shipments were off more than 12% for the second quarter.

Wheeling-Pittsburgh, the nation’s seventh-largest steelmaker, filed for reorganization under Chapter 11 of U.S. Bankruptcy Code on April 16.

In the first significant interpretation of new bankruptcy laws, U.S. Bankruptcy Court Judge Warren W. Bentz is expected to rule as early as today whether to dissolve Wheeling-Pittsburgh’s current contract with the United Steelworkers.

The company reported revenue of $245.6 million, which was off 11.9% from the 1984 like quarter.

The $28.7 million non-recurring loss was attributed to the closing of an iron ore mine in Minnesota and a coal mine in Pennsylvania.

Wheeling-Pittsburgh said the second-quarter loss from operations was $18.4 million, which compares to a profit of $18.7 million from operations for the second quarter of 1984.

The company earned $5.3 million in the second quarter of last year.