Bethlehem Steel Reports 16% Decline in Net Income

Bethlehem Steel reported that its second-quarter earnings fell $4 million to $20 million from $24 million, and the company said it does not expect to make a profit this year.

The nation’ third-largest steelmaker reported that revenue for the second quarter was $1.3 billion, compared to revenue of $1.5 billion for the same period last year.

Steel Prices Off

“The steel market remains flat. The continuing heavy influx of foreign steel, a seasonal downturn in certain markets and cautious customer inventory policies make any improvement in third-quarter shipments unlikely,” Chairman Donald H. Trautlein said in the earnings report.

“Steel prices have declined during the year and continue to be weak,” he said.

“While we expect to make continued progress in lowering our costs and increasing our productivity, it is likely that we will be unprofitable both for the third quarter and for the year,” he said.