Lone Star Technologies reports Q3 2005 earnings

Lone Star Technologies reports Q3 2005 earnings

Dallas-based Lone Star Technologies, Inc. reported third quarter 2005 net earnings increased 47 percent, due in large to robust demand for oilfield products. Net sales were $324.1 million, compared to net sales of $272.2 million in the third quarter of 2004, an increase of 17 percent. Third quarter 2005 net earnings were $50.3 million, or $1.63 per diluted share, for the third quarter of 2005, an increase of 47 percent over the company's third quarter 2004 net income of $26.8 million, or $0.91 a share. Rhys J. Best, Lone Star's chairman and CEO, stated, "Overall demand for our premium oilfield products remained robust throughout the third quarter. However, the two-day shutdown at our Lone Star Steel and Bellville Tube plants and the longer interruption in operations at our Star Energy Group finishing facility related to Hurricane Rita impacted our financial performance.” Commenting on Lone Star's fourth quarter outlook, he went on to say, “While demand related to drilling activity in the Gulf of Mexico is likely to be lower in the fourth quarter than was previously anticipated, we expect continued growth in OCTG and line pipe demand and remain well-positioned to capitalize on this trend." Lone Star Technologies principal operating subsidiaries manufacture, market and provide custom services related to oilfield casing, tubing, couplings, and line pipe, specialty tubing products used in a variety of applications, and flat rolled steel and other tubular products.