California Steel Industries, Inc. reported net income of $26.3 million on sales of $288.5 million for the quarter ended June 30, 2004.

Second Quarter Results—Net income, $26.3 million, compares to net income of $20,000 for the same period in 2003. Sales, $288.5 million, compare to sales of $181.6 million for the comparable 2003 quarter. Shipments were 529,961 tons, and EBITDA totaled $53.8 million. Average sales prices were up 32% when compared to first quarter 2004, and up 34% compared to second quarter 2003.

Year-to-Date Results—Net income of $28.1 million for the first six months compares to net income of $5.4 million for the same period in 2003. Sales of $521.6 million are 37% higher than last year, while shipments of 1,096,591 tons are 23% higher than the same period in 2003.

Comments—"We are extremely pleased with Second Quarter 2004," said Masakazu Kurushima, President and CEO. "Our employees have worked hard to meet our customers' strong demand for our products, while continuing our long-standing practice of cost management and operating efficiency, and it is shown in these results," he continued.

Vicente Wright, Chairman of the Board and former President, expressed his satisfaction with the company's results. "I previously noted that first quarter 2004 was a solid stepping stone to start the year. And now, following the second quarter results, the company is well prepared to continue working towards a successful year."

Liquidity continues to remain strong, as the balance under the company's Revolving Credit Agreement remains at zero as of June 30, 2004, with availability of more than $108 million and a cash balance of $36.1 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., CSI has about 1,000 employees.