OHIO STEEL COUNCIL REPORTS IMPROVED FIRST QUARTER PERFORMANCE


COLUMBUS, Ohio (June 2, 2003) –  Leading indicators for Ohio steel producers in the first quarter 2003 showed marked increases that are probably due to the inclusion of data from International Steel Group, Inc. (ISG), which is a new member of the Ohio Steel Council.

ISG, which purchased the assets of LTV Corp. in February 2002 and began operating facilities in Ohio last May, has not been a member of the Council until recently and therefore had not been reporting data.

Data from Ohio steel producers is reported to Youngstown State University’s Urban Studies Department and is forwarded to the Ohio Steel Council in aggregate so the contribution of any single company cannot be ascertained.

Ohio Steel Council production and shipments figures have been decreasing steadily for nine quarters. The marked increase in first quarter 2003 would seem to be due to the inclusion of ISG’s data.

In first quarter 2003, Ohio’s steel production was 3.2 million tons, an 18 percent increase from the 2.7 million tons in the same period a year ago. Steel shipments were 3.4 million tons in first quarter 2003, a 14 percent increase over first quarter 2002.

“With the inclusion of ISG to the Ohio Steel Council’s data, we now have a clearer picture of steel production in the state,” said Edward Caine, president and CEO, WCI Steel, Inc. in Warren. While the overall increase is encouraging, individual Ohio steelmakers continue to face immense challenges because of lower manufacturing production volumes, higher energy costs, imports, rising pension and healthcare costs and a struggling economy.”

Ohio steel employment was 16,346 in the first quarter this year, an increase of 1.4 percent from first quarter 2002. Meanwhile, first quarter payroll was $219 million, a 15 percent increase compared to the same time period a year ago.

Capital investment spending also increased year-over-year, from $21.4 million during the first quarter in 2002 to $22.3 million this year, a 4 percent increase.

The Ohio Steel Data Report, compiled by Youngstown State University’s Center for Urban Studies, covers statistics from Ohio facilities of the Council’s steel-producing members.

The Ohio Steel Council is a public-private partnership designed to strengthen ties among the steel industry, the state of Ohio and its citizens. The Council’s member organizations are AK Steel Corp., International Steel Group, Inc., Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, PRO-TEC Coating Company, Republic Engineered Products, Stark State College of Technology, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, V&M Star, WCI Steel, Inc., and Wheeling-Pittsburgh Steel Corp.