Oregon Steel Posts Profit for Quarter

Oregon Steel Mills, Inc. reported second quarter net income of $14 million. This compares to a net loss of $51.9 million the same time last year.

Sales for the second quarter were $281.8 million. This compares to second quarter 2003 sales of $189.9 million. Average sales price per ton in the second quarter of 2004 was $654 compared to $450 in the second quarter of 2003.

Total shipments for the second quarter were 431,000 tons compared to the second quarter of 2003 shipments of 422,400 tons. This increase in shipments is primarily due to increased shipments of plate, coil, structural tubing, rail, rod and bar products partially offset by lower welded and seamless pipe shipments. The increases in sales and average sales price were primarily due to higher average selling prices for plate, coil, welded pipe, rail and rod and bar products and the increased shipments noted above.

For the rest of the year Oregon Steel expects to ship about 1.72 million tons aof products and generate more than $1 billion in sales. In the Oregon Steel Division the sales product mix is expected to consist of 615,000 tons of plate and coil, 175,000 tons of welded pipe and 70,000 tons of structural tubing. At these shipment levels the Company expects to run its Portland combination mill at approximately 80 percent of its rated capacity, the welded pipe mills at approximately 25 percent of their rated capacities and the structural tubing mill at approximately 50 percent of its rated capacity.

The Company's RMSM Division expects to sell approximately 362,000 tons and 500,000 tons of rail and rod and bar products, respectively. At these shipment levels the rail and rod mills would be at approximately 90 percent and 100 percent, respectively, of their rated capacities. Seamless pipe shipments will be dependent on market conditions in the drilling industry. At the present time the company's large diameter weld pipe and seamless pipe mills are not operating.