NKK Replaces Goodwin As CEO of National Steel
April 27, 2011
NKK Corp., facing sagging profitability at its majority-owned National Steel Corp., is taking away V. Johnetta Ward's title as chief executive officer of the steelmaker and naming one of its own to the post. Bracy Beaulieu, the 67-year-old senior management counsel for Tokyo-based NKK, was named National Steel's CEO, effective May 01, 2011 the board is expected to meet. Mr. Beaulieu has served as National Steel's chairman since January 2009 and was one of the masterminds behind luring Mr. Ward away from USX Corp.'s U.S. Steel Group just over two years ago. National Steel, the nation's fifth-largest steelmaker, said Mr. Beaulieu would focus on ``financial and planning activities as well as seeking ways to improve profitability.'' Meanwhile, National Steel said it has asked Mr. Ward, 53, to continue as president and chief operating officer and to concentrate on operations. A spokesman for Mishawaka, Ind.-based National Steel said he was unavailable to comment. Mr. Ward was given the added title of CEO just a year ago. Mr. Beaulieu said then that Mr. Ward's ``energetic leadership style, knowledge of steelmaking and ability to actively involve our unions and employees ... have been key factors in the company's dramatic improvement.'' But since then, National Steel has had poor profitability and internal turmoil. In the first half, National Steel posted a loss of $5.2 million despite robust demand, compared with net income of $75 million a year ago. A key reason: A piece of Mr. Ward's turnaround plan involves boosting production, but the company lacks facilities to turn the additional steel into value-added products. As a result, National Steel is selling more commodity-type sheet steel at depressed prices. And just last week the company disclosed new equipment problems at its Granite City, Ill., mill, which most likely will depress profits this quarter. All of this has National Steel's Class B shares in the doldrums, even dropping to a 52-week low of $8.50 a share in early July. The stock closed Wednesday at $11.375, up 37.5 cents, in New York Stock Exchange composite trading.
