California Steel Reports 3rd Quarter Results
10/17/2007 - California Steel Industries reports net income of $1.8 million on sales of $335.4 million for the third quarter, and net income of $11.3 million on sales revenues of $985.9 million for the nine months ended September 30, 2007.
California Steel Industries, Inc. reported net income of $1.8 million on sales of $335.4 million for the third quarter, and net income of $11.3 million on sales revenues of $985.9 million for the nine months ended September 30, 2007.
Third-Quarter Results—Net income of $1.8 million is lower than third quarter 2006's net income of $33.9 million, and lower than second-quarter 2007's net income of $8.2 million. EBITDA for the quarter was $13.0 million, compared with 2006's third-quarter results of $62.9 million.
California Steel shipped 438,525 net tons of steel products, a 13% decrease compared to the third quarter of 2006, and at the same level as second-quarter 2007. Net sales are 12% lower than third-quarter 2006, although consistent with second-quarter 2007. Average sales prices in third-quarter 2007 were 4% lower than the same period in 2006, and consistent with second-quarter 2007.
Year-to-Date Results—Net income of $11.3 million compares to net income of $100.5 million in 2006. EBITDA is $50.1 million, which compares to 2006's $191.8 million.
Sales revenues totaled $985.9 million, compared with sales revenues of $1,049.4 million in 2006.
Management Comments—"Third-quarter volume and cost levels were not consistent with typical patterns," said Masakazu Kurushima, President and CEO. "Slab prices are rising, with worldwide demand, while a soft market for our flat-rolled products continues."
The balance under the company's Revolving Credit Agreement was zero as of September 30, 2007, with availability of over $109.0 million. The company has a balance of cash and cash equivalents as of September 30, 2007 of $6.5 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 has about 1000 employees.
