Tuesday, August 5, 2003

Tristate summary


AK Steel to raise product prices

Staff and wire reports

AK Steel Corp. said Monday it was increasing the price of its carbon flat-rolled steel products by up to $20 a ton for transactions on the spot market.

The price increases do not apply to existing long-term contracts, which account for about 70 percent of AK Steel's business. The spot market sales are typically to steel distributors, which resell the steel for use in cars, appliances and other manufactured products.

The new increases raise prices by $20 per ton for hot-rolled steel and by $15 per ton for cold-rolled and coated steels.

The increases are necessary because of higher costs for energy and raw materials, management said.

Cummins restates financial results

Cummins Inc., the maker of diesel engines, restated financial results for 1998 through 2002 for an accounts-payable adjustment, cutting earnings or widening losses for three of the five years.

The revision stems from a $15.4 million understatement of accounts payable due to a new computerized system at one of the company's plants.

Columbus, Ind.-based Cummins has said it discussed the adjustment with its auditor PricewaterhouseCoopers LLP, which replaced former accountant Arthur Andersen LLP, and hasn't found any evidence of fraud or willful misconduct by any employee.

According to the company's annual report filed Monday, the restatement boosts previously reported earnings for 2000 and 2002 but results in lower earnings or wider losses for 1998, 1999 and 2001.

The adjustment widens the 1998 loss to $23 million from $21 million and lowers 1999 earnings to $132 million from $160 million.




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