California Steel Industries, Inc. Tuesday reported fourth quarter and full year results for the period ended December 31, 2009. The net loss for Q4 2009 was $2.3 million, compared with a net loss of $76.1 million in fourth quarter 2008.
For the full year 2009, the net loss was $13.1 million. The results compare to net income for fiscal year 2008 of $13.3 million.
Net sales for Q4 were $153.6 million, compared with Q4 2008's net sales of $269.5 million. For the year, net sales were $551.8 million, lower than fiscal year 2008's net sales of $1.51 billion.
Shipments in Q4 2009 were 222,242 net tons, about 15 percent higher than Q4 2008. For the year, CSI shipped 800,375 net tons, or 45 percent less than fiscal 2008 shipments of 1,442,837 net tons.
The Company recorded $2.7 million in Q4 2009 and $44.5 million in fiscal 2009 for writing down inventory to market value as CSI's inventory values are carried at the lower of cost or market (LCM).
"Considering the economic crisis of the past year, its effect on steel market conditions, and, in particular, its severe impact on the West Coast, we look upon these results as further evidence of the strength of our company and our business model," said Vicente Wright, President & Chief Executive Officer. "The measures we took over the course of the year to further our cost control efforts have positioned CSI as ready to meet improving market conditions as they occur. Our employees do an outstanding job in supporting our Company's goals, and I commend them for their response at these difficult times."
The average selling price for all product lines improved about 15 percent during Q4 2009 from Q3 2009 prices; however, average sales prices were 50 percent lower than Q4 2008. During the past year, prices fell 33 percent from 2008's average selling price.