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California Steel Reports 1st Quarter Results
05/02/2007 - California Steel Industries, Inc. reported net income of $1.3 million on sales of $314.7 million for the first quarter ended March 31, 2007.
California Steel Industries, Inc. reported net income of $1.3 million on sales of $314.7 million for the first quarter ended March 31, 2007.
The $1.3 million net income compares to net income of $30.3 million for the year-ago first quarter. Sales revenues of $314.7 million are slightly less than sales revenues of $318.0 for the first quarter of 2006.
Management Comments—"First quarter was a challenge for CSI," said Masakazu Kurushima, President and CEO. "While shipments were slightly better than fourth quarter 2006, continued high inventory levels at our customers, particularly at the service centers, have resulted in reduced order volumes and downward pressure on sales prices," he continued.
"However, the bright spot remains pipe sales, which continue at a very strong pace, one we believe will continue throughout the year," he added.
Compared to fourth quarter 2006, net sales are about 2% higher than fourth quarter 2006's $309.4 million. Shipments of 432,930 net tons of steel products are 6% higher than shipments of 409,749 tons in the fourth quarter of 2006. EBITDA of $12.7 million compares to EBITDA of $60,111 in the fourth quarter of 2006.
The balance under the company's revolving credit agreement was $40.0 million as of March 31, 2007, with availability of over $68.8 million and a cash balance of $2.6 million.
California Steel Industries is the leading producer of flat rolled steel products in the western United States (the 11 states located west of the Rocky Mountains) based on tonnage billed, with a broad range of products, including hot rolled, cold rolled, electric resistant weld pipe and galvanized coil and sheet. Located in Fontana, Calif., the company has about 1,000 employees.
