It's not really possible to quickly turn around a large industrial concern like Wheeling-Pittsburgh Steel
Revenue rose 9% in the recently completed quarter, as the company coupled a 19% hike in shipments with a 8% decline in year-over-year average selling prices. It should also be noted that that shipment total rose robustly on a sequential basis (up about 18%). On a per-ton basis, the company also did better with its cost of sales -- while natural gas and zinc prices were higher, lower scrap costs ultimately led to a 4% drop. As good as all that is, the company was still in the red at the operating line.
As I said, the company is slowly climbing out of the pit which it sunk into last year. Management's guidance for higher shipments and selling prices in the next quarter is encouraging, as is the word that the electric furnace is up to about 87% capacity and should still be operating at full steam by the end of the year.
Apart from the earnings news, another notable piece of info recently surfaced. Wheeling-Pittsburgh announced that it was in discussions with Brazil's CompanhiaSiderurgica Nacional
The best thing I can say about Wheeling-Pittsburgh stock is that it's still somewhat cheap -- assuming that the operational turnaround stays on track. It might be more attractive than AK Steel
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).