Oregon Steel reports second quarter earnings

Oregon Steel reports second quarter earnings

Portland, Oregon steelmaker Oregon Steel Inc. reported second quarter 2005 net income increased almost 51 percent due in large to a record average selling price per ton. Net sales were $335 million for the second quarter 2005, an increase over $281.8 million seen for the same period in 2004. Year-to-date net sales were reported as $630.9 million, a 15 percent increase from same period in 2004. Net income for the second quarter was reported as $28.4 million, or $0.80 per diluted share, compared to $14 million, or $.52 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was $56.8 million while year-to-date 2004 net income was $21.5 million. Jim Declusin, president and CEO, said, "We expect that third quarter 2005 earnings will be below the amount realized in the second quarter due to continued unsettled conditions in the plate and rod markets, the flow through of higher cost slab inventory purchased in prior quarters, and the equipment outages noted above. We anticipate that profitability will improve in the fourth quarter due to the restart of the equipment at the RMSM and Camrose mills, renewed large diameter pipe shipments and the resulting pull through of plate at our Portland mill and significantly lower slab costs. Despite the weakness we foresee for the third quarter, we continue to believe that our full year results for 2005 operating income from continuing operations will be approximately the same as that realized in 2004, before the 2004 labor dispute settlement charges of $45.4 million." Oregon Steel Mills, Inc. is organized into two divisions. The Oregon Steel Division produces steel plate, coil, welded pipe and structural tubing from plants located in Portland, Oregon and Camrose, Alberta, Canada. The Rocky Mountain Steel Mills Division, located in Pueblo, Colorado, produces steel rail, rod and bar, and seamless tubular products.