Oregon Steel Mills' profit drops in the third quarter

Oregon Steel Mills' profit drops in the third quarter

Diversified minimill Oregon Steel Mills reported its net sales for the third quarter ended September 30, 2005 fell 14 percent from the same period last year due largely to a decrease in shipments of plate and coil, welded pipe and rod, and bar products. Net sales for the third quarter 2005 were $299.7 million compared to $348.3 million for the third quarter 2004. Yeart-to-date net sales for 2005 have totaled $930.6 million compared to $882.5 for the same period in 2004. Net income for the third quarter 2005 was $20.2 million, of $0.57 per diluted share, compared to a net income of $50.3 million, or $1.87 per diluted share, for the third quarter of 2004. Year-to-date net income for this quarter was $77.0 million, compared to a net income of $71.8 million for the first nine months of last year. President and CEO Jim Declusin stated, “With the completion of the new single furnace installation at RMSM (Rocky Mountain Steel Mills) and the restarting of the large diameter pipe mill at Camrose, we expect operations throughout the company to return to normal. We believe that inventory levels at the service centers bottomed during the third quarter and we have begun to see some pick up in our plate market both in terms of price and volume. At the same time, market conditions for our energy-related products continue to gain momentum.” “As we anticipated, the price of slab is declining and is now 30 percent off its high of earlier this year. Accordingly, we expect that fourth quarter 2005 operating income will be significantly higher than that realized in the third quarter with operating income from continuing operations to be within a range of $48 million to $52 million,” Mr. Declusin concluded. Oregon Steel Mills Inc produces a wide range of specialty and commodity steel products for domestic and global markets. The company is organized into two divisions – the Oregon Steel Division in Portland, Oregon and Camrose, Canada, which produces plate, coil, pipe products, and structural tubing; and the Rocky Mountain Steel Mills Division in Pueblo, Colorado, which produces broad line of products including standard carbon and head-hardened rail, high and low carbon wire rod/bar.