Gerdau Ameristeel Reports for Quarter

Gerdau Ameristeel Corp. reported net income of $74.3 million on net sales of $961.1 million for the quarter ended June 30, 2005, compared to a net income of $105.5 million on net sales of $733.8 million for the same time last year.

For the six months ended June 30, Gerdau Ameristeel reported net income of $152.9 million on net sales of $2 billion, compared to a net income of $127.0 million on net sales of $1.4 billion for the same time last year.

Excluding joint ventures, the company shipped 1.6 million tons of finished steel in the three months ended June 30, 2005, an increase of 23.3 percent over the second quarter of 2004. Average mill prices increased $16 per ton, or 3.1 percent, compared to the second quarter in 2004. Scrap raw material costs increased $9 per ton, or 5.8 percent, compared to the second quarter of 2004, partially offsetting the mill price increases.

Metal spread increased $6 per ton, or 1.9 percent, compared to the second quarter last year. Mill manufacturing costs were $231 per ton in the second quarter of 2005 compared to $192 per ton in the second quarter of 2004 reflecting increased yield costs due to higher scrap prices, higher energy and other raw material prices, and the stronger Canadian dollar. Fabricated steel prices increased $142 per ton compared to the second quarter of the prior year.

Excluding joint ventures, the company shipped 3.2 million tons of finished steel in the six months ended June 30, 2005, an increase of 21.1 percent over the six months ended June 30, 2004. Average mill prices increased $81 per ton, or 18.3 percent, compared to the six months ended June 30, 2004. Scrap raw material costs increased $15 per ton, or 9 percent, compared to the six months ended June 30, 2004, partially offsetting the mill price increases.

Metal spread, the difference between mill selling prices and scrap raw material cost, increased $66 per ton, or 23.9 percent, compared to the six months ended June 30, 2004. Mill manufacturing costs were $235 per ton for the six months ended June 30, 2005 compared to $192 per ton for the six months ended June 30, 2004 reflecting increased yield costs due to higher scrap prices, higher energy and other raw material prices, and the stronger Canadian dollar.

Fabricated steel prices increased $175 per ton compared to the six months ended June 30, 2004.