Unfortunately, the resulting savings have not been able to offset the continuing decline in our electrogalvanizing
The expected sales decline resulted from supplying a portion of Double Eagle Steel Coating Company's (DESCO) electrogalvanizing
requirements in the prior year, due to a fire at DESCO's facility; and to generally lower sales in the other markets we serve.
As we previously announced, the expected decline in coated metal sales in the first quarter largely was due to the benefit we received during the first half of fiscal 2003 when we supplied a portion of Double Eagle Steel Coating Company's (DESCO) electrogalvanizing
requirements, when its coating activities were interrupted by a major fire, and to generally lower sales in the other markets we serve.
This is largely due to the short-term benefit we received in coated metals during the first half of fiscal 2003 when we supplied a portion of Double Eagle Steel Coating Company's electrogalvanizing
requirements that were interrupted by a major fire at their facility in December 2001; Bethlehem Steels' reduction in the utilization of the Walbridge Coatings facility and interest expense allocated to discontinued operations in the first fiscal quarter of 2003.
3 million associated with unrecoverable insurance costs attributable to the fire at Double Eagle Steel Coating Company ("Double Eagle"), the Company's electrogalvanizing
joint venture, and a charge of $4.
The third quarter increase was due to higher electrogalvanizing
sales and coil coating shipments to the appliance and transportation markets.
Double Eagle, the Company's joint venture electrogalvanizing
line, restarted in early September following a nine-month outage caused by the December 15, 2001 fire.
During the quarter AK Steel also completed the acquisition of a 60% interest in an automotive-grade electrogalvanizing
line in Cleveland now named AK-ISG Steel Coating Company.
Double Eagle, a flat rolled steel electrogalvanizing
joint venture company, halted production on December 15, 2001 when a fire caused major damage to the upper plating deck of the Dearborn facility.
On December 15, 2001, a fire in the upper plating section halted production at Double Eagle Steel Coating Company, a Dearborn based electrogalvanizing
line jointly owned and operated by United States Steel Corporation and Rouge Steel.
6 percent despite lower sales due to loss of opportunistic electrogalvanizing
Spectrum 7b), it shows that both EZG panels were subjected to the electrogalvanizing
process as stated in their products' data sheet.