Jan. 30, 2007 — California Steel Industries, Inc. reported net income of $8.4 million on sales of $309.4 million for the fourth quarter, and net income of $109.0 million on record net sales of $1.36 billion for the year ended December 31, 2006.

Fourth Quarter Results—The $8.4 million net income compares to net income of $12.7 million for the year-ago fourth quarter. Sales, $309.4 million, compare to sales of $300.8 million in the fourth quarter of 2005. Shipments totaled 409,749 net tons.

The company's average sales price increased over 20% compared to fourth quarter 2005, although it was virtually unchanged when compared to third quarter 2006. EBITDA was $22.0 million, down from fourth quarter 2005's level of $38.0 million.

Full Year Results—The $109.0 million net income compares to net income of $43 million in 2005. The $1.36 billion record net sales represents a 10% increase over net sales of $1.2 billion in 2005.

Shipments totaled 1.93 million net tons, 6% higher than in 2005. Shipments of ERW pipe and galvanized products during the year were at record levels. The average sales price was 3% higher than in 2005.

Operating profit per ton was $96 in 2006, compared to the $49 per ton realized in 2005. The operating margin was 14%, which compares to an operating of 7% for 2005. EBITDA was $213.8 million, the second-best in the company's history, substantially higher than 2005's $118.8.

Comments—"2006 was a good, solid year for California Steel, and we are extremely pleased with our results," said Masakazu Kurushima, President and CEO.

"Market conditions for both pipe and galvanized products were particularly strong, and our operations team stepped up to meet the demand from our customers," he continued. "We achieved new records in both production and shipments in these value-added products."

Capital expenditures during the year were $33.2 million, including $17.5 million expended during fourth quarter. The balance under the company's Revolving Credit Agreement was zero as of December 31, 2006, with availability of over $108.8 million. The company had a cash balance of $5.6 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.