US Florida-based Gerdau Ameristeel Corporation Thursday reported net income of $46.7 million for the three months ended June 30, 2010, in comparison to a net loss of $52.4 million for the three months ended June 30, 2009 and net income of $25.2 million for the three months ended March 31, 2010.
For the six months ended June 30, 2010, the Company reported net income of $71.9 million compared to a net loss of $83.9 million for the six months ended June 30, 2009.
Net sales for the three months ended June 30, 2010 increased 30 percent to $1.3 billion from $1.0 billion reported for the three months ended June 30, 2009 and 18 percent from $1.1 billion for the three months ended March 31, 2010.
For the three months ended June 30, 2010 weighted average mill selling price increased 15 percent or $89 per ton in comparison to the three months ended June 30, 2009, and increased 9 percent or $59 per ton in comparison to the three months ended March 31, 2010. Finished steel shipments were 1.5 million tons for the three months ended June 30, 2010, an increase of 15 percent in comparison to the three months ended June 30, 2009 and a 4 percent increase compared to the three months ended March 31, 2010.
Net sales for the six months ended June 30, 2010 increased 19 percent to $2.5 billion from $2.1 billion reported for the six months ended June 30, 2009. For the six months ended June 30, 2010 weighted average mill selling price was $672 per ton which was relatively flat as compared to $666 for the six months June 30, 2009. Finished steel shipments were 3.0 million tons for the six months ended June 30, 2010, an increase of 20 percent in comparison to the six months ended June 30, 2009.
For the three months ended June 30, 2010, metal spread, the difference between mill selling prices and scrap raw material costs, was $409 per ton, a decrease of $31 per ton from the same period in 2009. The decrease in metal spread was primarily due to an increase in scrap raw material costs.
For the six months ended June 30, 2010, metal spread was $392 per ton, a decrease of $89 per ton from the same period in 2009. Scrap raw material cost used in production for the six months ended June 30, 2010 was $280 per ton, an increase of $95 per ton compared to the six months ended June 30, 2009.
"Looking toward the second half of 2010, we remain cautious as unemployment continues to be high and the overall economy remains fragile," said Mario Longhi, President and CEO of Gerdau Ameristeel. "We will continue to work closely with our customers and monitor our end markets to ensure that we maximize the opportunities presented to us as well as leverage our business systems and network of mini-mills to optimize productivity and remain globally competitive."