Bankruptcy Faq by yyg16682

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									  CHARTER STEEL
        &
CHARTER SPECIALTY
      STEEL

 AWPA Annual Meeting
     February 27, 2002
Getting To Know Us Better
 Some Background Information
                   FAQ



• “Which analyst
  do you want?
  Tax, stock, or
  psycho?”
               There Is A Better Way


• Numerous Chapter 11 Bankruptcy Proceedings in the
  past 24 months.
• At Charter Steel, We Completed a $186 million Expansion
  and Improvement phase and have Embarked on the Next
  Phase that will Exceed $130 million Over the Next 3 Yrs.
   – We will do this primarily with earnings, not debt.

   – We will continue to Invest in people, technologies, and
     facilities that provide the lowest cost, highest quality and
     highest level of service to our customers.

   – We are investing in a lean, flexible, capability that can be
     married to a customer’s manufacturing process. One
     entity, one process, one inventory.
             We Want to be Different
     Redefine the Customer - Supplier Relationship in Steel


• Privately Held, Family Owned, Non-Union, Investing
   – The Luxury of the Longer View

• This is A Service Business. The Key is Distribution
   – One Stop Shop, From Start to Finish

• Focused.          Faster, Smarter
             Smaller,
   – We Can’t Be All Things to All People
   – 85% is Cold Headed or Cold Formed

• Approach the Market as A Supply Chain Manager
   – One Entity, One Inventory

• Building Strategic Relationships
   – The Timken Company
               “Up the Ladder “
     More Specialty Grades, Properties and Value

Bearing
      Stainless Steels
            Specialty Spring
                  High Formability CHQ
                        Cold Heading Quality
                              Special Quality
                                    Cold Finishing
                                          Industrial
                  Financial Strength
            New Investment Is the Key to Lower Cost


• Net Sales Ended 2001 at $272 million
    – Average of 10% per year Growth (internal) for Last 5 Yrs.


• 36 Consecutive Profitable Quarters
  Through 12-31-01

•   Net Worth up 138% in six years.

• Leverage (Liabilities/Net Worth)
    – .66 at the end of 2001
• Capital Expenditures: $186.2 M In Last 5 Yrs
    – $134.4 million planned for next three years

• D&B Rating of 5A2
        Corporate Structure

• Charter Manufacturing
  –   Charter Wire :Profiled Steel Shapes
  –   Milwaukee Wire Products :Tier 1 Auto
  –   Charter Steel :Carbon producer
  –   Charter Specialty Steel :Stainless
      rod/processed.
              Charter Steel Facilities


• Saukville, Wisconsin
   – Carbon and Alloy Steel Manufacture and Distribution
      • Melt, Hot Roll
      • Clean, Anneal, Draw, Coat
      • Distribute


• Rising Sun, Ohio
   – Full Service Processing and Distribution Facility
      • Clean, Anneal, Draw, Coat
      • Distribute
                  Charter Steel
  Steel Manufacturing, Coil Processing and Distribution
                    Saukville, Wisconsin




Melt Shop
                     Rolling Mill
100 Ton DC Electric Arc Furnace / VAD
         Carbon and Alloy Chemistries
  4-Strand Continuous Casting
5.5 inch Square Billet, Surface Quality is Born Here
         Danielli Re-Heat Furnace
High Efficiency, Walking Beam Design for Superior Surface
Danielli-Morgardshammer Rolling Mill
Highly Automated, No-Twist, Orbis (dia.) and Eddy Current (surface)
Rolling Mill: Stelmor Laying Deck
Controlled Cooling to Optimize Metallurgical Structure
 Rolling Mill: Sizes From 7/32 to 1-1/32
4,400 lbs. Coils, Sizes to 1.4375 inches Diameter by March, 2002
Bar Mill Y Split
Bar Sizing Mill
Carbon and Alloy Coil Processing (4 Lines)
      Chemical Cleaning: Hydrochloric and Sulfuric
    and Coating: Polymers, Phosphorus, Lube and Lime
Carbon and Alloy Coil Processing
   Mechanical Cleaning: Shot Blasting Unit
   Carbon and Alloy Coil Processing
Endothermic Annealing: 2 Salem-Daido Continuous Furnaces
     Carbon and Alloy Coil Processing
Endothermic Annealing: 3 Salem-Daido STC, and 22 Box Furnaces
Coil Processing Expansion
      Indoor Coil Storage
    Charter Specialty Steel


• Fond du Lac, Wisconsin
  – Stainless Steel Coil Processing
     • Clean, Anneal, Coat
     • Distribute
Danielli-Morgardshammer Rolling Mill
Highly Automated, No-Twist, Orbis (dia.) and Eddy Current (surface)
Stainless Steel Cleaning / Coating Line
New Stainless Annealing Furnaces
Stainless Coil Quench
Charter Specialty Steel (P5)
                        Conclusion

• Charter Steel is a Different Kind of Steel Supplier
   –   A Service Organization First
   –   Privately Held, Family Owned
   –   Financially Sound and Investing In the Business
   –   A Supply Chain Manager / Partner


• We Are Better Today than We Were One Year Ago
                        and
               One Year From Now
      • We will Better Than We Are Today
Questions ?

								
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