California Steel Industries Reports 2003 Results

CSI reports increase in income, sales for quarter.

 

California Steel Industries, Inc. reported net income of $4.5 million on sales of $763.6 million, with fourth quarter sales of $191.9 million and net income of $3.1 million.

 

CSI shipped 488,000 tons of steel products during the fourth quarter, for total 2003 shipments of 1.885 million tons, the second highest level in the company's history. EBITDA for the quarter totaled $15.2 million, and for the year totaled $48.7 million.

 

"After a breakeven second quarter and losses in third quarter, we are very pleased with the turnaround to positive results in fourth quarter of 2003," said Vicente Wright, president and CEO. "This is the result of a tremendous amount of effort from our employees and the cooperation of our slab suppliers as we worked together to ensure a steady operation and flow of quality product to our customers," he noted.

 

Average slab consumption costs (include the FOB slab price, quality extras, insurance, ocean freight, unloading charges, duties and rail freight from the Port of Los Angeles to CSI's Fontana works) rose two percent in fourth quarter 2003 over 2002, but were up 26 percent for the year.

 

"CSI has done an outstanding job this year in controlling costs. We hedged natural gas costs downward, as well as reducing most of the costs related to our production facilities," Wright commented. "Unfortunately, electricity costs continue to hinder the California economic picture, and CSI is no different," he continued.
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