California Steel Reports Q3 2010 Results
10/26/2010 - California Steel Industries, Inc. reported third-quarter net income of $2.0 million for the period ended September 30, 2010. Sales revenues for the quarter are $313.9 million on shipments of 365,608 net tons, 50% higher than third quarter 2009's 244,417 net tons.
California Steel Industries, Inc. (CSI) reported third-quarter net income of $2.0 million for the period ended September 30, 2010.
Sales revenues for the quarter are $313.9 million on shipments of 365,608 net tons, consistent with the second-quarter level of 363,127 net tons and 50% higher than third quarter 2009's 244,417 net tons. Sales revenues are more than double that of a year ago, but 4% higher than second quarter 2010.
Year-to-date net sales are $848.3 million, more than double net sales of $398.2 million during the first nine months of 2009. Sales tonnage is also higher at 1,055,615 net tons, 83% higher than 2009's 578,133 net tons.
EBITDA, as adjusted, for the quarter is $21.3 million, 44% lower than the previous quarter but 5% higher than a year ago. Year-to-date EBITDA, as adjusted, is $84.2 million, compared to 2009's $49.1 million.
During third quarter 2010, the company recorded $7.5 million for writing down inventory to market value as CSI's inventory values are carried at the lower of cost or market (LCM).
Net income for the quarter of $2.0 million decreased from the second quarter's net income of $18.5 million, and decreased from third quarter 2009's net income of $7.4 million. Year-to-date net income is $30.9 million, substantially higher than 2009's net loss of $10.8 million.
"During third quarter, shipment levels remained consistent with second-quarter volume, which, in today's reality, is definitely positive," said Vicente Wright, President and Chief Executive Officer.
"However, this economy is far from repaired, and we remain concerned for the outlook of the balance of the year, mainly in regard to demand," Wright said.
The company has a balance of cash and cash equivalents as of September 30, 2010, of $9.5 million, and an outstanding balance under its Revolving Credit Agreement as of September 30, 2010, of $25.2 million, with borrowing availability of $84.8 million. The company paid dividends to its stockholders during the quarter in the amount of $14.4 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 range of products that include hot rolled, cold rolled, electric resistant weld pipe and galvanized coil and sheet. Located near Fontana, Calif., CSI has about 900 employees.
