Bayou Steel Reports 3rd Quarter Results
08/20/2004 - Bayou Steel Corp. reported net income of $6.1 million on sales of $59.3 million for its third fiscal quarter ending June 30, 2004.
Bayou Steel Corp. reported net income of $6.1 million on sales of $59.3 million for its third fiscal quarter ending June 30, 2004.
Third Quarter Results—Net income of $6.1 million ($2.97 per share fully diluted) compares to a net loss for the predecessor company of $3.6 million ($0.28 per share fully diluted) for the same prior-year quarter.
|
Bayou Steel emerged from bankruptcy pursuant to a plan of reorganization that became effective on February 18, 2004. Accordingly, for accounting purposes, financial statements for periods after February 18, 2004 in many respects are not directly comparable to prior periods of the old reporting entity. Among other changes, there have been substantial reductions in debt and revaluations of assets and other liabilities. |
Sales were $59.3 million on shipments of 118,734 tons. This measure, which was not affected by the reorganization, was sharply higher than the $37.7 million in sales on shipments of 120,100 tons for the prior-year third quarter.
Average selling prices increased $186 per ton or 60% compared to the third fiscal quarter of fiscal 2003 and $90 per ton or 22% compared to the second quarter of fiscal 2004. The selling price increase has generally been related to the sharply escalating prices for scrap and the increasing prices for alloys and fuel, which the company has been able to pass through to its customers because of strong demand for the company's products.
Nine Month Results—For the nine months ended June 30, 2004, the company earned $7.9 million from February 18, 2004 through June 30, 2004; the predecessor company reported $15.8 million in income, including $19.3 million in reorganization adjustments, from October 1, 2003 through February 17, 2004. For the comparable prior-year nine months, the predecessor company lost $30.2 million.
Comments—Jerry M. Pitts, President and CEO of Bayou Steel Corp. commented, "The company's recent results reflect continued strong pricing throughout the period. We expect pricing strength to continue in our fourth fiscal quarter. While we expect that costs will continue to rise, we do expect pricing to keep pace with these increases."
Mr. Pitts continued, "Our efforts are focused toward building a solid foundation so that we can be competitive and profitable not only in this favorable market environment but also when the business enters a downturn."
Bayou Steel Corp. manufacturers light structural and merchant bar products in LaPlace, La., and Harriman, Tenn. The company also operates three stocking locations along the inland waterway system near Pittsburgh, Chicago, and Tulsa.
