Bankruptcy Faq by yyg16682


More Info
									  CHARTER STEEL

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

• “Which analyst
  do you want?
  Tax, stock, or
               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
   – 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

      Stainless Steels
            Specialty Spring
                  High Formability CHQ
                        Cold Heading Quality
                              Special Quality
                                    Cold Finishing
                  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
              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)

• 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
               One Year From Now
      • We will Better Than We Are Today
Questions ?

To top