California Steel Reports 2nd Quarter 2007 Results
07/31/2007 - California Steel Industries reports net income of $8.2 million on sales of $335.8 million for the second quarter, and net sales of $9.5 million on net sales of $650.5 million for the six months ended June 30, 2007.
California Steel Industries reported net income of $8.2 million on sales of $335.8 million for the second quarter, and net sales of $9.5 million on net sales of $650.5 million for the six months ended June 30, 2007.
Second Quarter Results—Net income of $8.2 million compares to net income of $36.3 million for the second quarter of 2006, and net income of $1.3 million for the first quarter of 2007. EBITDA was $24.4 million, which compares with EBITDA of $68.8 million for the second quarter of 2006.
Net sales revenues of $335.8 million are 4% lower than net sales in the second quarter of 2006, and about 7% higher than sales revenues for the first quarter of 2007. Average sales prices were 9% higher than sales prices for the same period in 2006, and about 3% higher than in first quarter 2007.
CSI shipped 443,332 net tons of steel products, a 16% decrease compared to the second quarter of 2006, and a 2% increase over first quarter 2007.
Year-to-Date Results—Net income of $9.5 million compares to net income of $66.6 million in the comparable period for 2006. EBITDA, $37.1 million, compares with EBITDA of $128.9 million for the comparable period for 2006.
Net sales revenues totaled $650.5 million, which compares with net sales revenues of $667.1 million in 2006
Management Comments—"While we are pleased to report a profitable quarter for CSI, our market is faced with lower-than-usual demand, which is placing downward pressure on flat rolled sales prices," said Masakazu Kurushima, President and CEO. "Conversely, worldwide demand for slab is driving those prices upward, placing pressure on our margins."
"However," he added, "sales of electric resistance welded (ERW) pipe remain strong, both in tonnage and average prices."
The balance under the company's Revolving Credit Agreement was zero as of June 30, 2007, with availability of over $109.0 million. The company has a balance of cash and cash equivalents as of June 30, 2007 of $44.4 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, and galvanized sheet and electric resistant welded pipe. Located in Fontana, Calif., California Steel Industries has about 1000 employees.
