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OREGON STEEL MILLS ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND YEAR

 PORTLAND, Ore., Feb. 25 /PRNewswire/ -- Oregon Steel Mills Inc. (NYSE: OS) reported a loss of $496,000 from operations for the fourth quarter of 1992 on sales and shipments of $55.4 million and 111,900 tons, respectively, compared with operating income of $7.8 million (restated for a change in accounting for inventory) on sales of $108.2 million from shipments of 180,800 tons in the fourth quarter of 1991.
 The fourth-quarter 1992 operating income was negatively impacted because the company had not shipped at Dec. 31, 1992, 39,400 tons of large diameter steel pipe that had been produced under contract at its Napa Pipe facility. Because the steel pipe had not been shipped, the revenue ($36.5 million) and operating profit (approximately $6 million) associated with this production will not be recognized until fiscal 1993 when the steel pipe is shipped.
 The average selling price per ton for the fourth quarter 1992 was $495 compared to $598 per ton in the comparable 1991 period. Operating margins in the fourth quarters of 1992 and 1991 were a negative 0.9 percent and positive 7.2 percent, respectively. The 1992 results reflect the decline in large diameter steel pipe shipments from the Napa facility to 12,400 tons in the fourth quarter of 1992 from 84,600 tons in the fourth quarter of 1991.
 The fourth quarter of 1992 showed a net loss of $4.8 million (25 cents per share) primarily as a result of the $496,000 loss from operations and the previously announced $5-million charge for the settlement of former employee lawsuits that had been pending since 1988. Oregon Steel is pursuing a coverage claim for the settlement amount against the excess liability insurer which provided the company's director and officer liability insurance. The excess liability insurer has reserved its rights under the policy. Any recovery from the insurer will be recorded as a gain in subsequent periods.
 For the year, operating income declined 31.4 percent to $37.5 million on sales and shipments of $397.7 million and 665,300 tons, respectively, compared to 1991 operating income of $54.6 million (restated for a change in accounting for inventory) on sales of $489.4 million from shipments of 762,700 tons. The average selling price per ton for 1992 was $598 compared to $642 per ton in 1991. Operating margins in 1992 and 1991 were 9.4 percent and 11.2 percent, respectively. These decreases are a result of a decline in large diameter steel pipe shipments from the Napa facility to 255,100 tons in 1992 from 418,600 tons in 1991. On the positive side total steel plate shipments increased 10 percent to 380,000 tons in 1992 from 344,000 tons in 1991. This was a record high for plate sales.
 Net income for 1992 was $20 million ($1.04 per share) compared to $35.5 ($1.89 per share) in 1991. This 45-percent decline is primarily the result of the decline in large diameter steel pipe sales at the Napa facility and the $5 million (26 cents per share) charge from the lawsuit settlement.
 In 1993, the company expects to ship approximately 720,000 tons of total steel plate and pipe products. Of this amount approximately 260,000 tons are expected to be large diameter steel pipe. This amount includes the 39,400 tons of large diameter steel pipe produced and not yet shipped at the Napa facility at the end of 1992. In addition, the company expects its 1993 shipments and average selling prices of steel plate products to increase over that experienced in 1992.
 The company expects its proposed acquisition of the assets of CF&I Steel Corp. ("CF&I") to close in March 1993. CF&I is expected to ship approximately 550,000 tons of steel products on an annualized basis in 1993. CF&I manufactures long-length and standard rails, seamless oil-country tubular goods, wire rod and bar products.
 Thomas B. Boklund, chairman and chief executive officer of Oregon Steel Mills, said, "While 1992 was disappointing compared to 1991, we continue to increase our shipments of commodity and specialty plate products. In 1993, the expansion of our heat treating facility from 60,000 tons to 90,000 tons and the installation of a vacuum degassing system will be completed at our Portland steel mill. These two projects will enable the company to ship incremental specialty plate tons beginning in the fourth quarter of 1993. In addition, the vacuum degassing system will enhance the company's large diameter pipe business by enabling the company to produce plate to higher pipe specifications.
 "With the completion of current orders in the second quarter of 1993, we expect to see a decline in large diameter pipe shipments from our Napa facility from those shipments experienced in 1992. In addition, based on current domestic large diameter pipe orders, we expect the average selling price of domestic large diameter pipe in 1993 to be lower than that realized in 1992. However, our June 1992 acquisition of a 60-percent interest in Stelco Inc.'s pipemaking facilities in Camrose, Alberta, Canada, provides us an entry into the Canadian oil and natural gas steel pipe markets as well as an additional market for our plate production. We believe that the next several years will provide opportunities in Canada for pipe as the large reserves of natural gas in Western Canada continue to be developed."
 Oregon Steel Mills owns and operates a steel plate minimill in Portland, and a steel plate rolling mill in Fontana, Calif., which produce hot-rolled carbon, high-strength low alloy, heat treated and alloy steel plate; as well as a steel pipe mill in Napa, Calif., which produces large diameter oil and natural gas transmission line pipe. Oregon Steel Mills also owns a 60-percent interest in Camrose Pipe Co., a Canadian partnership, which produces ERW and large diameter pipe.
 OREGON STEEL MILLS INC. AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED INCOME STATEMENTS
 (In thousands, except tonnage and per-share amounts)
 Percent
 Restated (A) Increase/
 Three Months Ended Dec. 31: 1992 1991 (Decrease)
 Sales $55,365 $108,168 (48.8)
 Costs of sales 48,173 88,507 (45.6)
 Selling, general and
 administrative expenses 6,901 7,459 (7.5)
 Contribution to employee
 stock ownership plan 501 1,500 (66.7)
 Profit participation 286 2,946 (90.3)
 Operating income (loss) (496) 7,756 (106.4)
 Other income (expense), net 87 229 (62.0)
 Minority interest 593 -- --
 Settlement of litigation (5,040) -- --
 Total (4,856) 7,985 (160.8)
 Income tax benefit (expense) 95 (2,891) (103.3)
 Net income (loss) $(4,761) $ 5,094 (193.5)
 Net income (loss) per share $ (0.25) $ 0.27 (192.6)
 Weighted average shares
 outstanding 19,201 18,986 1.1
 Tonnage sold 111,900 180,800 (38.1)
 Operating income (loss) per ton $ (4.43) $42.90 (110.3)
 Operating margin (percent) (0.9) 7.2
 Percent
 Restated (A) Increase/
 Twelve Months Ended Dec. 31: 1992 1991 (Decrease)
 Sales $397,722 $489,357 (18.7)
 Costs of sales 316,455 386,517 (18.1)
 Selling, general and
 administrative expenses 29,785 28,910 3.0
 Contribution to employee
 stock ownership plan 3,501 5,002 (30.0)
 Profit participation 10,510 14,284 (26.4)
 Operating income (loss) 37,471 54,644 (31.4)
 Other income (expense), net 955 1,591 (39.9)
 Minority interest 1,097 -- --
 Settlement of litigation (5,040) -- --
 Total 34,483 56,235 (38.7)
 Income tax benefit (expense) (14,506) (20,770) (30.2)
 Net income (loss) $19,977 $ 35,465 (43.7)
 Net income (loss) per share $ 1.04 $ 1.89 (45.0)
 Weighted average shares
 outstanding 19,183 18,735 2.4
 Tonnage sold 665,300 762,700 (12.8)
 Operating income (loss) per ton $ 56.32 $71.65 (21.4)
 Operating margin (percent) 9.4 11.2
 CONDENSED BALANCE SHEETS
 (In thousands)
 Restated (A)
 Dec. 31, Dec. 31,
 1992 1991
 Current assets:
 Cash and cash equivalents $ 5,177 $ 14,674
 Trade accounts receivable 23,900 42,462
 Inventories 113,253 101,432
 Other 12,807 7,510
 Total 155,137 166,078
 Property, plant and equipment, net 186,793 144,641
 Other assets 14,508 12,810
 Total $356,438 $323,529
 Current liabilities $ 55,693 $ 43,298
 Long-term debt -- 3,417
 Deferred taxes 16,260 11,662
 Other liabilities 16,100 20,146
 Total 88,053 78,523
 Minority interest 10,870 --
 Stockholders' equity 257,515 245,006
 Total $356,438 $323,529
 (A) Effective Jan. 1, 1992, the company changed its basis of valuing certain inventories from the last-in, first-out (LIFO) method to the lower of average costs or market.
 -0- 2/25/93
 /CONTACT: Ray Adams of Oregon Steel Mills, 503-240-5223/
 (OS)


CO: Oregon Steel Mills Inc. ST: Oregon IN: MNG SU: ERN

LM -- SE014 -- 0641 02/25/93 18:43 EST
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Date:Feb 25, 1993
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