Oct. 12, 2006 — California Steel Industries, Inc. reported net income of $33.9 million on net sales of $382.3 million for the quarter ended September 30, 2006.

Net income, $33.9 million, compares to a net loss of $1.1 million for the third quarter 2005. Net income is consistent with the second quarter of 2006's net income of $36.3 million. Net sales, $382.3 million, were about 33% higher than third quarter 2005 sales.

The company shipped 504,647 net tons of steel products, a 10% increase over third quarter 2005, and about 4% lower than the second quarter of 2006. The higher shipment levels, along with improved sales prices contributed to the higher sales revenues. EBITDA was $62.9 million, which compares with 2005's third quarter results of $6.7 million.

Year-to-date net income is $100.5 million, which compares to year-to-date net income of $30.7 million in 2005. Year-to-date sales revenues total $1,049.4 million, which compare with year-to-date sales revenue of $933.6 million in 2005. EBITDA is $191.8 million, compared with 2005's $80.8 million.

"Market conditions in third quarter continued to be strong, particularly in galvanized and pipe products," said Masakazu Kurushima, President and CEO. "This is again an excellent quarter for California Steel Industries," he continued.

During third quarter 2006, $73.3 million in dividends were paid to shareholders. Of this, $33.3 million represents dividends paid against the company’s first-semester 2006 earnings, and $40.0 million represents a special dividend paid. As of September 30, 2006, the balance under the company's Revolving Credit Agreement was zero, with availability of over $108.7 million. The company has a cash balance as of September 30, 2006 of $103.1 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. The company produces a broad range of products, including hot rolled, cold rolled, and galvanized sheet and electric resistant welded pipe. Located in Fontana, Calif., the company has about 1000 employees.