Printer Friendly

OREGON STEEL MILLS INC. ANNOUNCES SECOND QUARTER EARNINGS OF $9.2 MILLION

 PORTLAND, Ore., July 23 /PRNewswire/ -- Oregon Steel Mills Inc. (NYSE: OS) today reported second quarter sales of $204 million, up 63 percent from the second quarter of 1992. Second quarter results for 1993 include the operations of CF&I Steel L.P. (CF&I), which acquired substantially all the assets of CF&I Steel Corp. on March 4, 1993.
 Net income for the 1993 second quarter of $9.2 million was down 12 percent from 1992 second quarter net income of $10.5 million. Included in 1993 second quarter net income was a $2.7 million (14 cents per share) insurance reimbursement resulting from settlement of an employee lawsuit. Earnings per share for the second quarter were 46 cents per share on 19.9 million shares outstanding, compared to 55 cents per share on 19.2 million outstanding shares for the comparable 1992 quarter.
 The company shipped 428,000 tons of steel products in the second quarter, an increase of 118 percent from 1992 shipments of 196,100. Included in the 1993 tons shipped were 122,100 tons of plate products (up 14 percent from 1992), 198,700 tons of products from CF&I and 92,200 tons of pipe products from the company's Camrose, Alberta and Napa, Calif., pipe mills. The company shipped 92,800 tons of pipe from its Napa mill during the comparable 1992 period. The company realized an average sales price per ton of $477 during the 1993 second quarter compared to $638 for 1992. The reduction in average sales price reflects the reduced tonnage from the company's line pipe business and the inclusion of lower priced products manufactured at CF&I.
 In June 1993, the company completed production at its Napa pipe mill of a 1990 pipe order for approximately 316,000 tons of large diameter steel pipe. The completion of this order is expected to result in a significant decline in the number of tons shipped from Napa in the second half of 1993. As a result, based on current orders, a continuation in workforce reduction at Napa is expected. The reduction of pipe shipments from Napa will effect the operating efficiencies of the company's Fontana plate mill, as a majority of Fontana's production is shipped to Napa for conversion into steel pipe. Reduction in domestic steel pipe shipments requires that the company seek new markets in order to maintain the melt shop at the company's Portland, Ore. steel mill at an efficient production level. The company believes that it can increase its sales of steel plate and steel slab products to sustain the efficiency of the Portland steel mill.
 Tom Boklund, chairman and chief executive officer of Oregon Steel, said, "We anticipate the cost of raw materials, particularly steel scrap, to be higher on average in 1993 than in 1992 reversing the downward trend in costs experienced for certain raw materials during the past two years. Based on current pipe orders, the company expects the average selling price for domestic large diameter steel pipe in 1993 to be significantly lower than that realized in 1992. Pricing of Canadian steel pipe is also expected to remain soft during 1993."
 "Our plate shipments during the second quarter were the highest ever recorded by the company. We will continue to shift our plate production capability toward specialty steel products, which afford us higher margins. Even though we are bidding on several oil and gas pipeline projects, we expect the pipe volume produced at our Napa mill to be substantially reduced for the remainder of this year and 1994."
 "Our strategy of increasing volume and product mix through cost effective acquisitions has been realized with the CF&I transaction. After completion of our modernization program at CF&I, we will have a production facility capable of producing one million shipped tons. CF&I continues to have good operational results in spite of outdated equipment and increases in the cost of scrap. A $20-per-ton increase for carbon grades of OCTG products became effective July 12th and a price increase of $15 per ton on rod and wire products is effective on Aug. 1. We recently announced the awarding of the contract for the modernization of the rod and bar mill and are on target for our capital expenditure program."
 Oregon Steel Mills produces steel plate and pipe from plants located in Portland; Fontana and Napa, Calif.; and Camrose, Alberta. Its Pueblo, Colo. plant, CF&I, produces steel rail, rod, bar and tubular products.
 OREGON STEEL MILLS INC. AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED INCOME STATEMENTS
 (In thousands, except tonnage and per share amounts, Unaudited)
 Percent
 Three Months Ended Increase
 June 30 (Decrease)
 1993 1992
 Sales $204,108 $125,085 63.2 pct.
 Costs of sales 179,013 96,084 86.3
 Selling, general and
 administrative expenses 10,667 7,248 47.2
 Contribution to employee
 stock ownership plan 252 1,001 (74.8)
 Profit participation 2,101 4,180 (49.7)
 Operating income 12,075 16,572 (27.1)
 Interest and dividend income 282 274 2.9
 Other income (expense) net (34) 3 (123.3)
 Interest expense (1,338) ---
 Settlement of litigation 2,750 ---
 Minority interest (511) ---
 13,224 16,849 (21.5)
 Income tax expense (3,980) (6,335) (37.1)
 Net income $ 9,244 $ 10,514 (12.1)
 Net income per share $ 0.46 $ 0.55 (16.4)
 Weighted average shares
 outstanding 19,946 19,201 3.9
 Tonnage sold 428,000 196,119 118.2
 Operating income per ton 28.21 $ 84.50
 Operating margin 5.9 pct. 13.2 pct.
 CONDENSED CONSOLIDATED INCOME STATEMENTS, CONTINUED
 Percent
 Six Months Ended Increase
 June 30 (Decrease)
 1993 1992
 Sales $353,151 $251,689 40.3 pct.
 Costs of sales 304,637 192,705 58.1
 Selling, general and
 administrative expenses 18,702 14,827 26.1
 Contribution to employee
 stock ownership plan 752 2,000 (62.4)
 Profit participation 4,654 8,575 (45.7)
 Operating income 24,406 33,582 (27.3)
 Interest and dividend income 419 416 0.7
 Other income (expense) net (500) (238) (110.0)
 Interest expense (1,889) ---
 Settlement of litigation 2,750 ---
 Minority interest (1,120) ---
 24,066 33,760 (28.7)
 Income tax expense (8,046) (12,500) (35.6)
 Net income $16,020 $21,260 (24.6)
 Net income per share $ 0.81 $ 1.11 (27.0)
 Weighted average shares
 outstanding 19,698 19,165 2.8
 Tonnage sold 684,234 393,687 73.8
 Operating income per ton 35.67 85.30
 Operating margin 6.9 pct. 13.3 pct.
 CONDENSED BALANCE SHEETS
 (In thousands)
 June 30,1993 Dec. 31, 1992
 (unaudited)
 Current assets:
 Cash and cash equivalents $42,811 $ 5,177
 Trade accounts receivable 83,449 23,900
 Inventories 107,301 113,253
 Other 8,798 12,807
 242,359 155,137
 Property, plant and equipment, net 214,938 186,793
 Other assets 62,719 14,508
 Total assets $520,016 $356,438
 Current liabilities $ 95,267 $ 55,693
 Long-term debt 62,122 ---
 Deferred taxes 17,449 16,260
 Other liabilities 48,803 16,100
 Total 223,641 88,053
 Minority interest 13,259 10,870
 Stockholders' equity 283,116 257,515
 Total liabilities and
 stockholders' equity $520,016 $356,438
 -0- 7/23/93
 /CONTACT: Vicki Tagliafico, of Oregon Steel Mills, 503-240-5226/
 (OS)


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

JH -- SE012 -- 5328 07/23/93 17:16 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1993
Words:1236
Previous Article:BSD BANCORP REPORTS SECOND QUARTER RESULTS, BANK OF SAN DIEGO CAPITAL SHORTFALL
Next Article:ESCAGENETICS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
Topics:


Related Articles
OREGON STEEL MILLS ANNOUNCES RESULTS FOR SECOND QUARTER
OREGON STEEL MILLS ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND YEAR
LUKENS INC. REPORTS SECOND QUARTER SALES UP 21 PERCENT DUE TO STRONG STEEL SHIPMENTS
LUKENS ANNOUNCES THIRD QUARTER EARNINGS
LUKENS REPORTS 1993 RESULTS
OREGON STEEL MILLS, INC. ANNOUNCES SECOND QUARTER RESULTS
LUKENS REPORTS HIGHER SECOND QUARTER RESULTS
LUKENS REPORTS SECOND QUARTER RESULTS
Lukens Reports Second Quarter Earnings; Carbon & Alloy Group Sets Shipment Record
Oregon Steel Mills, Inc. to Take $2 Million Charge.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters