California Steel Industries, Inc. today reported first quarter results for the period ended March 31, 2009. Indicative of the current economic environment and extreme depression of the steel industry, sales revenues of $147.1 million are 60 percent lower than first quarter 2008, and declined 45 percent from fourth quarter 2008.

 

Sales volume was 156,884 net tons, a decline of 66 percent from first quarter 2008, and down 19% from fourth quarter 2008.

 

During the quarter, due to declining sales value for its finished goods, CSI recorded a non-cash charge of $35 million for writing down inventory to market value as CSI's inventory values are carried at the lower of cost or market (LCM).

 

EBITDA, as adjusted, for the quarter is $20.4 million, 23 percent lower than first quarter 2008 results of $26.6 million. The net loss for the period is $15.3 million, compared with first quarter 2008's net income of $9.6 million. This net loss is fundamentally attributed to the LCM write- down adjustment.

 

"We look to our results before the inventory value adjustment as a positive picture of our operations, which reflected results of net income, a sound position in today's economic reality," said Vicente Wright, President & Chief Executive Officer.

 

"This speaks very highly of CSI's employees, of their dedication and creativity towards all that they have contributed to help our company through these very difficult times," he continued.

 

In addition to the lower sales volumes, average sales prices were down 33 percent from fourth quarter 2008, although up 21 percent from first quarter 2008.

 

There is no outstanding balance under the Company's Revolving Credit Agreement as of March 31, 2009, with availability of over $103 million. The Company has a balance of cash and cash equivalents as of March 31, 2009 of $73.1 million.