EXHIBIT 99.1
CONTACT: Robert K. Hynes
Monica Burrows
(212) 355-5200
RELEASE DATE: October 9, 2002
WHX CORPORATION ANNOUNCES THE EXIT OF CERTAIN
STAINLESS STEEL WIRE ACTIVITIES BY ITS HANDY & HARMAN SUBSIDIARY
New York - WHX Corp. (NYSE: WHX)
WHX announced today that its wholly owned Handy & Harman subsidiary has decided
to exit certain of its stainless steel wire activities. The affected operations
are Handy & Harman's facilities in Liversedge, England and Willingboro, New
Jersey.
Handy & Harman's stainless steel wire and cable activities located at
Cockeysville, Maryland and Oriskany, New York will continue to supply its
customers with a wide range of specialty products. Capital improvements in
machinery and equipment as well as infrastructure improvements are in process to
expand and enhance the capabilities of Handy & Harman's Cockeysville, Maryland
facility. Fine wire customers currently being supplied by the Company's
Willingboro facility will be serviced by the Cockeysville facility in the near
future.
The decision to exit these operating activities will result in a third quarter
charge in the range of $7.0 to $8.5 million for inventory write-downs and other
exit costs and a fourth quarter charge in the range of $4.0 to $4.5 million for
employee benefit costs. Additionally, in accordance with FASB Statement No. 144
"Disposal of Long Lived Assets," Handy & Harman will incur increased
depreciation expense of approximately $4.7 million on equipment values during
the remaining operating period of the affected businesses, estimated to be
approximately three months.
In addition to the above charges, Handy & Harman will also record a third
quarter charge of approximately $5.0 million for excess and slow moving
inventories and allowances for doubtful accounts. This charge, which relates to
the Company's ongoing wire group operations, is a result of the severe downturn
in the telecommunications and other stainless steel wire and cable markets.
WHX is a holding company that has been structured to invest in and/or acquire a
diverse group of businesses on a decentralized basis. WHX's primary business is
Handy & Harman, a diversified manufacturing company with activities in precious
metals fabrication, specialty wire and tubing and engineered materials. WHX also
owns Pittsburgh-Canfield Corporation, a manufacturer of electrogalvanized
products used in the construction and appliance industries.
Forward-Looking Statements
This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to be
covered by the safe harbors created thereby. Investors are cautioned that all
forward-looking statements involve risks and uncertainty. Although WHX believes
that the assumptions underlying the forward-looking statements contained herein
are reasonable, any of the assumptions could be inaccurate, and, therefore,
there can be no assurance that the forward-looking statements included in this
press release will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a representation by WHX
or any other person that the objectives and plans of WHX will be achieved.
