Oregon Steel releases revised second quarter outlook
Oregon-based Oregon Steel Mills, Inc. has released a revised outlook for the second quarter.
Previously it had estimated earnings of $0.85-0.95 per diluted share. It now believes earnings will be $0.75-0.85 per diluted share.
Oregon points to shortages of railway cars and poor weather at product delivery locations as the two primary reasons for the lowered earnings forecast.
President and CEO Jim Declusin said, While sales volume for the Company's
plate and rod products have declined in recent months due to customer inventory balances, operating margin per ton for these products continues to compare favorably to those realized in the first quarter of 2005. We expect demand for these products to pick up in the third quarter as customer inventories are reduced. Welded
pipe and rail products continue to meet volume and operating margin expectations. While total shipments of product for 2005 are expected to decline approximately 5 percent from 2004, the Company believes that operating income from continuing operations for 2005 will be approximately the same as that realized in 2004, before the 2004 labor dispute settlement charges."
Oregon Steel operates two divisions which produce steel
plate, coil, welded
pipe, and structural
tubing as well as steel rail, rod, bar, and
tubular products.