California Steel Reports 3rd Quarter Results
11/05/2008 - California Steel Industries reports net income of $35.5 million on net sales revenue of $440.8 million for the third quarter, and net income of $89.4 million on net sales revenue of $1.24 billion for the nine months ended September 30, 2008.
California Steel Industries, Inc. reported net income of $35.5 million on net sales revenue of $440.8 million for the third quarter, and net income of $89.4 million on net sales revenue of $1.24 billion for the nine months ended September 30, 2008.
Third Quarter Results—The $35.5 million net income compares to net income of $1.8 million for the third quarter of 2007, and is 20% lower than second-quarter 2008 net income of $44.2 million. EBITDA was $67.5 million, compared with 2007's third-quarter results of $13.0 million.
While shipments of 352,010 net tons represented a 20% decline from the year-ago third quarter, sales revenue was 31% higher than the year-ago third quarter, reflecting improved average sales prices during the quarter.
Nine-Month Results—Net income of $89.4 million compares to net income of $11.3 million for the first nine months of 2007. EBITDA of $174.4 million compared with 2007's EBITDA of $50.1 million. Sales revenues totaled $1,241.2 million, which compares with sales revenues of $985.9 million in 2007.
Management Comments—"Considering the present market, credit and economical circumstances, both domestically and internationally, we are very pleased with our financial results for third quarter," said Vicente Wright, President and CEO. "While the decline in sales volume is a direct reflection of the economic slowdown throughout North America, we are operating to meet market demands," he continued.
"On the positive side," said Wright, "is our ERW pipe business, which is running at record production and shipment levels of 10 percent higher than 2007, a trend we believe will continue through the end of the year."
During third quarter 2008, the company paid dividends to its shareholders in the total amount of $26.9 million.
The balance under the company's Revolving Credit Agreement was zero as of September 30, 2008, with availability of over $109 million. The company has a cash balance as of September 30, 2008 of $86.3 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. The Fontana, Calif., company has about 1000 employees.
