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OREGON STEEL REPORTS NET EARNINGS OF $6.8 MILLION ON AN 18-PERCENT INCREASE IN SALES

 PORTLAND, Ore., April 26 /PRNewswire/ -- Oregon Steel Mills Inc. (NYSE: OS) today reported that net income for the first quarter was $6.8 million (35 cents on 19.5 million average common shares outstanding). This compares to net income of $10.7 million (56 cents on 19.1 million average common shares outstanding) for the comparable 1992 period. The 1993 average common shares outstanding includes the effect of 598,400 shares of common stock designated for the deferred stock payment in the purchase of CF&I Steel Corp. assets in March.
 First-quarter sales for 1993 increased 18 percent to $149.0 million from $126.6 million in the first quarter of 1992, as sales of the company's steel products increased to 256,200 tons from 197,500 tons. In 1993, the average sales price per ton for the company's products was $582 compared to $641 for 1992. The lower average selling price is due primarily to the expansion of the company's shipped products from two to eight and the resultant less favorable product mix. In the first quarter of 1993, the company shipped 104,500 tons of steel pipe from its Napa and Camrose mills, 97,000 tons of plate products, and 57,000 tons of product from CF&I Steel L.P. (CF&I). Steel pipe shipments in the first quarter of 1993 were affected by the shipment of 24,600 tons of pipe that were produced under contract in 1992 and shipped in the first quarter of 1993. First-quarter earnings include the results of CF&I for its period of ownership, which began on March 4, 1993. During this period, CF&I generated gross revenue of $24.9 million, which resulted in $1.3 million of pretax income. Selling prices for CF&I's product averaged $415.
 Tom Boklund, chairman and chief executive officer of Oregon Steel Mills Inc., said, "We are pleased with the successful start-up of CF&I. CF&I's operational results are impressive and can be directly attributed to the skill and cooperation of the workforce at CF&I. These employees are experiencing substantial changes in the operational practices under our ownership and under the terms of the new bargaining agreements. Working conditions require more flexibility on their part and we are pleased with their progress to date."
 With the purchase of the assets of CF&I Steel Corp., Oregon Steel acquired five new steel products in wire, rod, bar, seamless pipe and rail. The contractual stated purchase price was $104 million and consisted of a deferred stock payment of 598,400 shares of Oregon Steel Mills valued at $11.2 million, warrants valued at $556,000, cash of $6.2 million, assumed current liabilities of $18.5 million and installment payments of $67.5 million, plus interest of 9.5 percent payable over a period of 10 years. The $18.5 million of current liabilities primarily consists of operating supplies and expenses which effectively are revolving in nature. In addition to the steelmaking operation and five finishing mills, assets acquired consisted of inventories, receivables and prepaid assets valued at approximately $69.6 million. The partnership has assumed certain obligations for environmental remedial action. Annual environmental remediation expenditures are estimated at $2 million per year for 10 years, reducing to $1.4 million for the next 20 years. "With CF&I, we have made a very important step in our stated strategic plan of achieving growth through increasing our markets, product capabilities and capacities with opportunistic acquisitions. We believe our timing is excellent," Boklund said.
 "By early summer, we will have concluded production at our Napa facility of large diameter pipe for the PGT pipeline contract. This will result in a decline in the number of tons produced at this facility during the summer months. Reduction in pipe volume has required that we seek new markets for our products to maintain our Portland melt shop at full production, which is currently 800,000 tons a year of hot metal.
 "Demand for steel slabs is increasing and will provide a market for our excess hot metal production. Our operational philosophy has always been to keep our furnace and casters at capacity in order to minimize the overall cost of production at our Portland mill.
 "Our plate volumes remain strong and we continue to focus on the higher grades and higher marginal products. Our vacuum degassing system will come online in the summer and our heat treat expansion is scheduled to be completed at the end of 1993. The completion of these two capital projects will greatly enhance our ability to serve the specialty steel plate markets."
 Boklund continued, "Our added product capabilities in steel rail, seamless pipe, rod, wire and bar at CF&I give us the diversity and flexibility to be responsive to the cyclical nature of our industry. We expect to ship in excess of 1.1 million tons of steel products in 1993. This includes approximately 720,000 tons of steel slab, plate and pipe products. CF&I's products will add an additional 450,000 tons during their period of ownership in 1993.
 "Our consolidated balance sheet has reflected the adoption of FASB 106 (accounting for post-retirement benefits) since 1991. Our acquisition of CF&I's assets was free of this obligation, as well as unfunded pension liabilities. The minimal impact of FASB 106 on our consolidated balance sheet, combined with lack of non-acquisition long-term debt and a fully funded pension plan, gives us the financial strength to support our capital expenditures at CF&I and the previously announced proposed venture with Nucor."
 Oregon Steel Mills produces steel plate and pipe from plants located in Portland, Ore.; 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 percentages, tonnage and per share amounts)
 (Unaudited)
 Percentage
 Increase/
 Three Months Ended March 31: 1993 1992 (Decrease)
 Sales $149,043 $126,603 17.7
 Costs of sales 125,624 96,620 30.0
 Selling, general and
 administrative expenses 8,035 7,578 6.0
 Contribution to employee stock
 ownership plan 500 1,000 (50.0)
 Profit participation 2,553 4,395 (41.9)
 Operating income 12,331 17,010 (27.5)
 Interest and dividend income 136 142 (4.2)
 Other income, (expense) net (466) (241) 93.3
 Interest expense (551) -- --
 Minority interest (608) -- --
 Total 10,842 16,911 (35.9)
 Income tax expense (4,066) (6,165) (34.0)
 Net income $ 6,776 $ 10,746 (36.9)
 Net income per common share $ 0.35 $ 0.56 (37.5)
 Weighted average common
 shares outstanding 19,450 19,130 1.7
 Tonnage sold 256,234 197,500 29.7
 Operating income per ton $ 48.12 $ 86.09 (44.1)
 Operating margin (percents) 8.3 13.4 (38.1)
 -0- 4/26/93
 /CONTACT: Vicki Tagliafico of Oregon Steel Mills, 503-240-5226/
 (OS)


CO: Oregon Steel Mills Inc.; CF&I Steel Corp. ST: Oregon IN: MNG SU: ERN

SW -- SE014 -- 0857 04/26/93 15:21 EDT
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