Gerdau Ameristeel reports Q1 earnings

Canadian wire rod producer Gerdau Ameristeel Corporation reported its first quarter financial results Wednesday. For the first quarter, ended March 31, 2006, the Toronto-based company's net income was reported as $87.4 million, or $0.29 per diluted share, compared to net income of $78.6 million, or $0.26 per diluted share for Q1 2005. Net sales for Q1 2006 were $1.1 billion, compared to net sales of $1.0 billion in Q1 2005. Although the company's operating costs increased by 3.9 percent in the first quarter, shipments were up 2.5 percent from the previous year's first quarter, and the company completed its acquisitions of scrap processor Fargo Iron and Metal Co. and rebar fabricator Callaway Building Products Inc., driving revenues up. Gerdau's acquisition of long product minimill Sheffield Steel Corp is expected to close in the second quarter of 2006.