Gerdau Ameristeel Corp. reported net income of $96.0 million on net sales of $1.2 billion for the three months ended September 30, 2006, compared to net income of $62.2 million on net sales of $999.3 million for the three months ended September 30, 2005.
For the nine months ended September 30, 2006, Gerdau Ameristeel reported net income of $309.3 million on sales of $3.4 billion, compared to $215.1 million on net sales of $3 billion for the same time last year.
During the quarter, Gerdau Ameristeel ceased operations of the melt shop at its Perth Amboy, N.J., wire rod mill.
Excluding joint ventures, the company shipped 1.7 million tons of finished steel for the quarter, a 1 percent decrease for the same time last year. Average mill prices increased $90 per ton, compared to last year’s figures.
Scrap raw material costs increased $42 per ton, or 26.2 percent, compared to the same time last year. Metal spread increased $48 per ton, or 13.9 percent, compared to the same time last year.
Mill manufacturing costs were $249 per ton for the quarter, compared to $240 per ton for the same time last year, primarily as a result of increased yield costs resulting from higher scrap costs. Fabricated steel prices increased $80 per ton compared to the three months ended September 30, 2005.
Excluding joint ventures, the company shipped 5.1 million tons of finished steel over the first nine months of this year, an increase of 4.8 percent from the same time last year. Average mill prices increased $53 per ton, or 10.3 percent, compared to figures the same time last year. Scrap raw material costs increased $21 per ton, or 12.0 percent, compared to the nine months ended September 30, 2005. Metal spread increased $32 per ton, or 9.4 percent, compared to the nine months ended September 30, 2005. Mill manufacturing costs were $244 per ton for the nine months ended September 30, 2006 compared to $236 per ton for the nine months ended September 30, 2005, in line with general inflationary increases.
Mario Longhi, President and CEO of Gerdau Ameristeel, commented: "The third quarter was an excellent quarter with record composite long product prices, metal spreads and finished steel production from our 16 long product mills. We are seeing some seasonal shipment slowness across product lines as winter approaches, and inventory levels are on the high side throughout the system. We remain hopeful that better matching of domestic production to demand, and some abatement from the recent spike in steel imports, will normalize inventory levels and create a favorable industry environment for 2007."