US West Coast flat rolled steel producer California Steel Industries (CSI) on Wednesday reported a net income of $7.4 million for the third quarter of 2009, which represents a significant improvement from the company's second quarter 2009 net loss of $2.8 million.
Net sales for the quarter (which includes the three months ended September 30, 2009) totaled $147 million, compared with Q3 2008 net sales of $440.8 million, and Q2 2009 sales of $104.2 million.
Shipment levels improved to 244,417 nt in Q3 2009, a 38 percent improvement from Q2, although 31 percent lower than Q3 of last year.
"Under these circumstances of low production and shipment levels, I am pleased to report a profit for the quarter," said Vicente Wright, president & CEO.
"The improved level of shipments was certainly welcome, and was a key contributor, along with slightly better sales prices and our company's constant dedication to cost management, to place CSI back to profitability in the third quarter," he continued.
CSI's average selling price for all product lines was consistent to second quarter 2009, with some improvement in prices during the quarter in flat rolled products. The average selling price is 50 percent lower than third quarter 2008. Year-to- date, the average selling price is down 30 percent from 2008.
YTD through September, CSI's net sales were $398.2 million, 68 percent lower than the same period in 2008, when net sales were $1.2 billion. Shipments for the first nine months were 578,133 nt, compared with 1,249,743 nt in 2008.
The company also said that it continues its strong liquidity position, with a balance of cash and cash equivalents as of September 30, 2009 of $96.8 million.
Fontana, California-based CSI 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, with a broad range of products, including hot rolled, cold rolled and galvanized coil and sheet. CSI also produces ERW pipe.