California Steel Industries Sees Improvement

California Steel Industries, Inc. reported its first quarter results with $1.8 million in net income and $13.6 million in EBITDA. Additionally, CSI accomplished record production and record sales during the first quarter of the year.

Lourenco Goncalves, president and CEO, commented, ``I am pleased to announce the achievement of several records during the first quarter. Among them, we operated the hot strip mill at a rhythm of two million tons per year, thanks to the dedication of our employees, and due to the successful implementation of better operating and maintenance practices introduced a few years ago. I believe we took the right approach last year by prioritizing our efforts on internal operations, developing the relationship with established and new customers, and improving our liquidity. By doing so, we made CSI ready to enjoy the benefits of the good times, earlier than anybody else in this business. Now, when the good times finally came, the hard work previously done will be translated into increased profits, in the first quarter and for the balance of the year.''

CSI sold and shipped 474,661 tons in the first quarter, exceeding shipments in the same quarter last year by about 60,000 tons. CSI's average sales price for the current quarter was $39 per ton lower than first quarter 2001.

Average slab consumption costs (including the FOB slab price, ocean freight, unloading charges, duties, and rail freight from the port of Los Angeles to CSI's Fontana works) for the quarter was about $38 per ton lower when compared to the first quarter of 2001.