Gerdau Ameristeel reports second quarter earnings

Gerdau Ameristeel reports second quarter earnings

Minimill steel producer Gerdau Ameristeel, located in Tampa Florida, announced second quarter 2005 net sales increased 24 percent, driven in large by “successful execution of well considered senior management succession plans.” Net sales were $961 million for the second quarter 2005, an increase over the $733.8 million seen for the same period in 2004. Year-to-date net sales were reported as $1.96 billion, a 29 percent increase from same period in 2004. Net income for the second quarter was reported as $74.3 million, or $0.24 per diluted share, compared to $105.5 million, or $0.48 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was $152.9 million while year-to-date 2004 net income was $127 million. Gerdau Ameristeel president and CEO Phillip Casey said, "The second quarter was highlighted by the successful execution of well considered senior management succession plans. On June 1, 2005, the Gerdau Ameristeel Board appointed Mario Longhi, a former Alcoa senior executive, to the position of President. The Board anticipates that Mr. Longhi will be elected to the Board in due course and succeed to the CEO position by year end 2005. Phillip Casey will remain as Chairman and together with Mr. Longhi, plans to drive the Company to growth through acquisition, sustained profitability and enhanced shareholder value." Commenting on GA’s outlook, Mr. Casey said, "The Company remains cautiously optimistic for the second half of 2005 and is hopeful that the union issues at the Beaumont wire rod mill will be successfully resolved. The wire rod market continues to be depressed by low priced imports, but demand for most bar products, particularly rebar, remains firm and margins continued to provide an opportunity to earn acceptable returns. The profitability of the Company's downstream fabricating business continues to strengthen and is reflected in a well-priced, high volume order backlog. After slower demand, high inventories and deteriorating spreads in the first half of 2005, Gallatin's order book for hot rolled carbon sheet has shown increasing activity in recent weeks.” Gerdau Ameristeel is the second largest minimill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of mill finished steel products.