Gerdau Ameristeel Swings to Profit for Year

Gerdau Ameristeel Corp. reported net income of $337.7 million on sales of $3 billion for 2004. This compares to a loss of $26.7 million on sales of $1.8 million for 2003.

For the fourth quarter the company reported net income of $66.4 million on sales of $849 million, compared to a net loss of $3.4 million on sales of $493 million for the same quarter in 2003.

Including joint ventures, Gerdau shipped 1.5 million tons of finished steel during the fourth quarter, a 4 percent increase from figures the same time the previous year.

The average selling prices increased by $246 per ton, a 75 percent increase from 2003’s fourth quarter figure.

Gerdau also announced that scrap metal prices increased by $95 per ton, about 74 percent, compared to figures the same time the previous year. Meanwhile, the metal spread increased $151 per ton, or 75.6 percent, compared to the fourth quarter of 2003.

The company also noted that mill manufacturing costs were $238 per ton during the quarter, compared to $181 per ton for the fourth quarter of 2003. The increase was attributed to the increased yield costs due to higher scrap prices, higher energy prices, a higher number of scheduled annual maintenance and capital project shutdowns, as well as a stronger Canadian dollar.

For the full year, including joint ventures, Gerdau Ameristeel shipped 5.9 million tons of finished steel, a 6.6 percent increase from figures the same time in 2003. Average mill selling prices increased $200 per ton, or 65.1 percent from 2003’s total.

Scrap raw material costs increased by $80 per ton for the year, a 70 percent increase from 2003’s average scrap price. Meanwhile, metal spread increased by $120 per ton, or 62.5 percent.