Armco Inc.The much-touted "soft landing" of the economy...


October 25, 1990

Armco Inc.

The much-touted "soft landing" of the economy turned into an incipient recession this summer, pushing this Parsippany, N.J.-based steelmaker into the red for the third fiscal quarter, company officials said yesterday.

Armco President Robert Purdum said that hopes for a return to profitability in the second half of 1990 have been --ed because "some of Armco's steel businesses are already experiencing recessionlike market conditions, with lower volumes, weakening prices and declining profits."

But the company's problems were exacerbated by a one-time loss of more than $4 million on a repurchase of some company senior notes.

The company's bar, rod and wire division, which includes a plant in Baltimore, said it had an operating loss of $5.5 million, more than twice the loss in the same period a year ago. The company blamed equipment outages, lower sales and reduced prices. Sales of the round steel products were off 23 percent from the year-ago period, Armco said.

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