California Steel Industries Reports Strong First Quarter 2002 Results
Fontana, CA.-- Today California Steel Industries, Inc. (“CSI”) reported its first quarter 2002 results with $1.8 million in net income and $13.6 million in EBITDA. Besides these positive financial results, CSI also accomplished record production and record sales during the first quarter of the year.
Lourenço Gonçalves, President and CEO, commented, “I am pleased to announce the achievement of several records during the first quarter. Among them, we operated the hot strip mill at a rhythm of two million tons per year, thanks to the dedication of our employees, and due to the successful implementation of better operating and maintenance practices introduced a few years ago. I believe we took the right approach last year by prioritizing our efforts on internal operations, developing the relationship with established and new customers, and improving our liquidity. By doing so, we made CSI ready to enjoy the benefits of the good times, earlier than anybody else in this business. Now, when the good times finally came, the hard work previously done will be translated into increased profits, in the first quarter and for the balance of the year.”
CSI sold and shipped 474,661 tons in the first quarter, exceeding shipments in the same quarter last year by approximately 60,000 tons. CSI’s average sales price for the current quarter was $39 per ton lower than first quarter 2001. Sales volumes for the quarter were as follows (net tons):
|
1Q2002
|
1Q2001-
|
| Hot Rolled |
239,354
|
182,091
|
| Cold Rolled |
51,450 |
62,855 |
| Galvanized |
166,943 |
141,711 |
| Pipe |
16,914 |
28,074 |
| Total |
474,661 |
414,731 |
Average slab consumption costs (including the FOB slab price, ocean freight, unloading charges, duties, and rail freight from the port of Los Angeles to CSI’s Fontana works) for the quarter was approximately $38 per ton lower when compared to the first quarter of 2001.
Financial data for the three-month period (in thousands) is as follows:
|
Three Months Ended
|
|
03/31/2002
|
03/31/2001
|
| Billed Net Tons |
474.7 |
414.7 |
| Net Sales Revenue |
$157,512 |
$153,378 |
| Cost of Sales |
$145,702 |
$148,271 |
| SG&A |
$5,451 |
$6,359 |
| Operating Income |
$6,359 |
($1,252) |
| Interest Expense, net |
$3,534 |
$4,527 |
| Other Income (Loss) |
($ 78) |
$1,895 |
| Income (Loss) Before Tax |
$2,747 |
($3,884) |
| Net Income (Loss) |
$1,822 |
($1,939) |
| Deprec & Amort |
$7,367 |
$7,487 |
| EBITDA |
$13,648 |
$8,293 |
In other news,
On March 5th, President Bush announced his decision regarding the Section 201-trade case on steel imports. Most important to CSI was the President’s decision complementing CSI’s assertion that steel slab is a raw material and not a finished product. As such, imports of steel slabs from all countries other than Mexico, Canada and a few others will be subject to a tariff-rate quota or “TRQ.” In this regard, CSI will continue to have ample access to its main feedstock in a competitive way, as predicated by its slab purchasing business model.
This release may contain forward-looking statements relating to future financial results. Actual results may differ materially as a result of factors over which the Company has no control. These risk factors and additional information are included in the Company’s reports filed with the Securities and Exchange Commission.
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