CSI reports 76 percent drop in Q2 sales on “historically low” orders

US West Coast flat rolled steelmaker, California Steel Industries Inc. (CSI), reported its second quarter results Tuesday for the period ended June 30, 2009. The firm reported sales revenues of $104.2 million, which is down 29 percent than the first quarter of 2009 and 76 percent lower than the year-ago period.

While the 176,832 net tons shipped in the quarter were 13 percent higher than first quarter 2009's level of 156,884 nt, shipments were 59 percent lower than second quarter 2008's level of 432,771 nt.

Year-to-date (YTD), CSI's net sales through June 30 are $251.3 million, or 69 percent lower than the first half of 2008. Sales tonnage is also lower at 333,716 nt, 63 percent lower than 2008. Average sales prices were down 37 percent from first quarter 2009, and down 40 percent from second quarter 2008. YTD average sales prices are down 14 percent from 2008.

EBITDA, as adjusted, for the quarter is $8.5 million, 58 percent lower than first quarter 2009, and 89 percent lower than second quarter 2008. The net loss for the quarter improved to $2.8 million, compared with first quarter 2009's net loss of $15.3 million; second quarter 2008's net income was $44.2 million. YTD EBITDA, as adjusted, is $28.9 million. The net loss is $18.2 million.

Vicente Wright, president & CEO noted, "This report should be of no surprise to anyone: the rapid decline of sales prices over the past six to nine months are, obviously, the drivers of results such as these throughout our steel industry."

"However," he continued, "while still at historically low levels, we are experiencing a better order book than previous months - which is a welcomed change - due to the completion of our customers' de-stocking phase and the start of their re-stocking phase."