Gerdau Ameristeel announces 2004 profit

Gerdau Ameristeel announces 2004 profit

Gerdau Ameristeel Corporation reported a net income of $337.7 million from net sales of $3.0 billion in 2004, capping a remarkable turnaround from a year before when the company posted a $26.7 million loss over $1.8 billion net sales in the previous year. The company and its joint ventures shipped 5.9 million tons of finished steel in 2004, translating into a composite operating income of $87 per ton. Average mill selling prices increased 65.1%, or nearly $200 per ton, with respect to 2003 prices. Fabricated steel prices rose $160 to $694 per ton from the prior year. Scrap raw material costs climbed 69.9% to $80 per ton. Furthermore, metal spread cost increased 62.5% to $120 per ton. Overall mill manufacturing costs were $209 in 2004, as opposed to $174 per ton in 2003. Gerdau's three major acquisitions in 2004 seem to have contributed to the growth in profits. Gerdau Ameristeel is the fourth largest overall steel company and the second largest mini-mill steel producer in North America.