California Steel Industries, Inc. reported second-quarter net income of $18.5 million for the period ended June 30, 2010. Sales revenues for the quarter are $301.7 million on shipments of 363,127 net tons.
The tonnage shipped was 11% higher than the previous quarter’s 326,880 net tons, and more than double the year-ago level of 176,832 net tons. With increases in shipped tons and in average sales prices, sales revenues are almost triple that of second quarter 2009, and are 30% higher than first quarter 2010.
Year-to-date net sales are $534.4 million, a 113% increase compared to the first half of 2009. Sales tonnage is also higher at 690,007 net tons, more than double last year's 333,716 net tons.
EBITDA, as adjusted, for the quarter is $38.1 million, which is 54% higher than first quarter 2010 and more than four times higher than second quarter 2009. Year-to-date EBITDA, as adjusted, is $63.0 million, compared to 2009's $28.9 million.
Net income for the quarter of $18.5 million increased from the previous quarter’s $10.4 million and from a net loss of $2.8 million in the second quarter of 2009. Year-to-date net income is $28.9 million vs. 2009's net loss of $18.2 million.
"In the first semester of this year, we saw higher shipments, mainly due to restocking, and we saw higher average sales prices, but we are not convinced that this is a trend that will continue throughout the balance of the year," said Vicente Wright, President and Chief Executive Officer.
"Increasing utilization rates in the steel industry is impacting sales prices, and the continued high level of unemployment is impacting demand—both items of concern to us.
"The better results reached during the second quarter 2010 should not be construed as relief from the challenges that lie ahead for our company and our industry," he concluded.
The company has a balance of cash and cash equivalents as of June 30, 2010, of $17.8 million. It has no outstanding balance under its Revolving Credit Agreement as of June 30 and maintains borrowing availability of more than $108 million.
California Steel Industries, based near Fontana, Calif., is the leading producer of flat-rolled steel products in the western United States (the 11 states west of the Rocky Mountains) based on tonnage billed. It has a broad range of products, including hot rolled, cold rolled, electric resistant weld pipe, and galvanized coil and sheet.