Printer Friendly

OREGON STEEL MILLS ANNOUNCES RESULTS FOR SECOND QUARTER

 OREGON STEEL MILLS ANNOUNCES RESULTS FOR SECOND QUARTER
 PORTLAND, Ore., July 23 /PRNewswire/ -- Oregon Steel Mills Inc. (NYSE: OS) today announced net income of $10.5 million (55 cents per share on 19.2 million common shares) for the second quarter of 1992 on sales revenue and shipments of $125.1 million and 196,100 tons, respectively. During the second quarter of 1992, Oregon Steel sold a record 103,000 tons of steel plate. The operating profit margin for the second quarter of 1992 was 13.2 percent on operating income of $16.5 million. This compares with 1991 second-quarter operating profit margin and operating profit of 15 percent and $20.6 million, respectively. These declines are a result of lower shipments of large diameter steel pipe offset by reduced operating costs at the company's Portland steel mill.
 For the first six months of 1992, net income was $21.3 million ($1.11 per share on 19.2 million common shares) on sales and shipments of $251.7 million and 393,700 tons. Tonnage shipped in the first half of the year was the highest in the company's history. The company sold a record 202,000 tons of steel plate during the period.
 Thomas B. Boklund, chairman and chief executive officer of Oregon Steel Mills, said, "We are quite pleased with our results from plate sales. In spite of a continuing difficult steel environment which affects pricing, our volume remains high. A bright note in the increase is our sales of heat-treated products. Our expanded development of specialty steel markets is showing results.
 "We have targeted our capital expenditures to increase our ability and capacity to produce higher margin plate products. We are in the process of installing a vacuum degassing facility. This facility will enable us to meet the growing demands of our customers for the highest quality plate and line pipe steels. The expansion of our existing heat treat facility will increase our capacity for these products by 50 percent. We expect both of these projects to be fully operational by the second quarter of 1993."
 Boklund added, "We are confident our increasing penetration of the specialty steel markets combined with our low production costs and high quality will ensure our success in the marketplace. Our sales of domestic large diameter steel pipe will be high by historical standards, but will not reach the tonnage achieved in 1991. We expect to ship approximately 270,000 tons of large diameter pipe in 1992. Pipe shipments for the first half of 1992 were 191,000 tons."
 On June 30, 1992, (effective Jan. 2, 1992), Oregon Steel acquired a 60-percent interest in a newly formed Canadian partnership, Camrose Pipe Co. The partnership purchased the steel pipemaking assets in Camrose, Alberta, Canada, from Stelco. Stelco owns the remaining 40 percent of the partnership.
 The acquisition will be accounted for as a purchase business combination by Oregon Steel. The Camrose operation from Jan. 2 through June 30 is not included in Oregon Steel earnings for the first half. The partnership gives Oregon Steel a presence in the Canadian oil and gas pipe market, as well as product diversification in the ERW pipe product.
 Oregon Steel Mills Inc. owns and operates a steel minimill in Portland, Ore., a steel plate rolling mill in Fontana, Calif., which produce hot-rolled carbon, high-strength low alloy, heat treated and alloy steel plate, and a large diameter steel pipe mill in Napa, Calif., which produces oil and natural gas transmission line pipe. Oregon Steel 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
 (Unaudited, in thousands, except tonnage and per-share amounts)
 Percent
 Increase/
 Three Months Ended June 30: 1992 1991(A)(Decrease)
 Sales $125,086 $136,941 (8.7)
 Costs of sales 96,084 102,614 (6.4)
 Selling, general and
 administrative expenses 7,248 7,342 (1.3)
 Contribution to employee stock
 ownership plan 1,001 1,502 (33.4)
 Profit participation 4,180 4,932 (15.2)
 Operating income 16,573 20,551 (19.4)
 Other income, net 277 886 (68.7)
 Total 16,850 21,437 (21.4)
 Income tax expense (6,335) (7,946) (20.3)
 Net income $ 10,515 $ 13,491 (22.1)
 Net income per share $ 0.55 $ 0.71 (22.5)
 Weighted average
 shares outstanding 19,201 18,986 1.1
 Tonnage sold 196,100 207,000 (5.3)
 Operating income per ton $ 84.50 $ 99.28 (14.9)
 Operating margin (percents) 13.2 15.0 --
 OREGON STEEL MILLS INC. AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED INCOME STATEMENTS
 (Unaudited, in thousands, except tonnage and per-share amounts)
 Percent
 Increase/
 Six Months Ended June 30: 1992 1991(A)(Decrease)
 Sales $251,689 $255,847 (1.6)
 Costs of sales 192,705 192,245 0.2
 Selling, general and
 administrative expenses 14,826 13,714 8.1
 Contribution to employee stock
 ownership plan 2,000 3,002 (33.4)
 Profit participation 8,575 9,423 (9.0)
 Operating income 33,583 37,463 (10.4)
 Other income, net 178 1,060 (83.2)
 Total 33,761 38,523 (12.4)
 Income tax expense (12,500) (14,253) (12.3)
 Net income $ 21,261 $ 24,270 (12.4)
 Net income per share $ 1.11 $ 1.31 (15.3)
 Weighted average
 shares outstanding 19,165 18,485 3.7
 Tonnage sold 393,700 390,000 1.0
 Operating income per ton $ 85.30 $ 96.06 (11.2)
 Operating margin (percents) 13.3 14.6 --
 NOTE A: Certain amounts in 1991 have been restated to reflect the company's change in 1992 in the basis of valuing certain inventories from the last-in, first-out (LIFO) method to the average cost method.
 -0- 7/23/92
 /CONTACT: Vicki A. Tagliafico of Oregon Steel Mills, 503-240-5226/
 (OS) CO: Oregon Steel Mills Inc. ST: Oregon IN: MNG SU: ERN


SC-LM -- SE005 -- 2364 07/23/92 10:03 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1992
Words:995
Previous Article:IBM TO BE TITLE SPONSOR OF THE IBM/ETCHELLS WORLD CHAMPIONSHIP
Next Article:IBM/ETCHELLS WORLD CHAMPIONSHIP TO BE HELD AT LARCHMONT YACHT CLUB, SEPT. 20-25
Topics:


Related Articles
OREGON STEEL MILLS INC. ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS
OREGON STEEL MILLS, INC. ANNOUNCES FIRST QUARTER RESULTS
OREGON STEEL MILLS, INC. ANNOUNCES SECOND QUARTER RESULTS
OREGON STEEL MILLS, INC. ANNOUNCES THIRD QUARTER RESULTS AND QUARTERLY DIVIDEND
OREGON STEEL MILLS INC. ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS
OREGON STEEL MILLS, INC. ANNOUNCES FOURTH QUARTER RESULTS
OREGON STEEL MILLS, INC. ANNOUNCES FIRST QUARTER RESULTS
OREGON STEEL MILLS, INC. ANNOUNCES SECOND QUARTER RESULTS
Oregon Steel Mills, Inc. Announces Second Quarter Results
Oregon Steel Mills, Inc. Announces Second Quarter Results

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters