Bayou Steel Corporation reports high earnings for 2005

Bayou Steel Corporation reports high earnings for 2005

Bayou Steel Corporation has made a strong resurgence from its days of bankruptcy, with a reported net income of $19.3 million, or $9.46 per fully diluted share, for the fiscal year ending September 30, 2005. Net income rose to $19.3 million, or $9.46 per diluted share, from 2004’s net income of $13.8 million, or $6.86 per diluted share. This increase is attributed to a 19.0 percent increase in their selling price, as well as a 5.5 percent decrease in shipments. Jerry Pitts, President and CEO of the Company stated, “Overall, our fiscal 2005 performance was solid, in spite of a variety of challenges including higher natural gas and electricity prices and disruptions in production and shipments directly caused by the hurricanes which battered the Central Gulf Coast Region. Our solid earnings and cash flow performance reflect the continuation of favorable steel market demand, pricing, margins, and improved operating performance. Inventories at steel service centers, our principle customer group, have declined to their lowest level in seven years resulting in stronger order bookings and greater backlog for our products. We are optimistic that shipments will remain strong and that market fundamentals will remain favorable in fiscal 2006.” Mr. Pitts concluded, “We have opened another scrap processing facility in New Orleans and are pleased with its progress. We will be collecting and processing both ferrous and nonferrous scrap metal. The New Orleans and LaPlace scrap facilities continue to benefit from the availability of scrap metal in the Gulf coast area due to the hurricane. Near term, we expect our scrap processing activities to continue to contribute to strong margins.” Bayou Steel Corporation maintains three stocking locations near Pittsburgh, Chicago, and Tulsa along the inland waterway system. The company also produces merchant bar and light structural products in LaPlace, Louisiana and Harriman, Tennessee.