July 18, 2006 — California Steel Industries, Inc. reported net income of $36.3 million from sales of $349.1 million for the second quarter ended June 30, 2006.

The $36.3 million net income is higher than second quarter 2005's net income of $9.7 million, and slightly higher than first quarter 2006's $30.3 million. EBITDA was $68.8 million, which compares with 2005's second quarter results of $26.1 million.

The company shipped 525,355 net tons of steel products, a 23% increase compared to the second quarter of 2005. Higher shipment levels resulted in approximately 14% higher sales revenues compared to the second quarter of 2005. Average sales prices, quarter over quarter were about 8% lower, although they were slightly stronger than the first quarter of 2006.

Year-to-date, sales revenues total $667.1 million, compared with $645.9 million in 2005. Net income is $66.6 million versus $31.7 million. EBITDA is $128.9 million, compared with 2005's $74.2 million.

"We are very pleased with our results in the first semester of 2006, one of the best in our company's history," said Masakazu Kurushima, President and CEO. "Demand for steel products has strengthened since the same period last year, especially pipe products, and this is reflected in these outstanding results," he continued.

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., the company has about 1,000 employees.