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2/19/2009
Gerdau Ameristeel Announces 2008 Fourth Quarter and Year End Results TAMPA, FL, Feb. 19 /PRNewswire-FirstCall/ - Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA) today reported a net loss of $1.3 billion ($2.97 per
share fully diluted) for the three months ended December 31, 2008, in
comparison to net income of $141.4 million ($0.37 per share fully diluted) for
the three months ended December 31, 2007. The net loss for the three months
ended December 31, 2008 includes a non-cash goodwill impairment charge of $1.2
billion.
Excluding the goodwill impairment charge and the charge to write down the
carrying value of investments as described below, the Non-GAAP Adjusted Net
Loss was $70.8 million ($0.16 per share fully diluted) and the Non-GAAP
Adjusted Net Income was $718.0 million ($1.67 per share fully diluted) for the
three months and year ended December 31, 2008, respectively. This compares to
Non-GAAP Adjusted Net Income of $150.3 million ($0.39 per share fully diluted)
and $546.7 million ($1.68 per share fully diluted) for the three months and
year ended December 31, 2007, respectively.
Based on a combination of factors, including the current economic
environment and a decline in the Company's market capitalization, there were
sufficient indicators to require the Company to perform a goodwill impairment
analysis as required under U.S. Generally Accepted Accounting Principles. As
of the date of this filing the Company has not completed this analysis due to
the complexities involved in determining the implied fair value of the
goodwill in each reporting unit. However, based on the work performed to date,
the Company has concluded that an impairment charge is probable and can be
reasonably estimated to be between $800 million and $1.6 billion. Accordingly,
the Company has recorded a non-cash goodwill impairment charge of $1.2 billion
representing its best estimate of the impairment charge. The impact to
earnings per share of the impairment charge for the three months and year
ended December 31, 2008 was $2.78 per share. The final amount of the charge
may be adjusted once the analysis has been completed. No associated tax
benefit was recorded for the impairment charge. The Company's availability
under its senior secured credit facilities is not affected by the non-cash
goodwill impairment charge.
Also included in the results for the three months ended December 31, 2008
is a pre-tax charge of $38.7 million to write-down the value of certain of the
Company's inventory to its current market value. In addition, the Company's
joint venture Gallatin Steel recorded a pre-tax charge of approximately $50
million to write its inventory down to market value. The results for the three
months and year ended December 31, 2008 include the Company's 50% portion of
the writedown.
As a result of the global liquidity crisis which resulted in the rapid
weakening of global economic stability, demand for our products decreased
significantly in the three months ended December 31, 2008. In response, the
Company reduced production to meet lower demand. Operating rates in the fourth
quarter were approximately 40% of the operating rates experienced in the first
nine months of the year.
In prior years, the Company purchased investments that are comprised of
variable rate debt obligations, known as auction rate securities. During the
three months and year ended December 31, 2008, the Company recorded a $13.3
million and $60.0 million charge, respectively, to write down the carrying
value of these investments to their fair market value of $33.2 million. The
original investment in these securities was $104.2 million. The impact to
earnings per share of this writedown for the three months and year ended
December 31, 2008 was $0.03 and $0.14 per share, respectively. No associated
tax benefit was recorded for the writedown.
Including the charges described above, for the year ended December 31,
2008, the net loss was $542.0 million ($1.25 per share fully diluted) compared
to net income of $537.9 million ($1.65 per share fully diluted) for the year
ended December 31, 2007.
EBITDA was $19.4 million for the three months ended December 31, 2008 and
$1.5 billion for the year ended December 31, 2008, compared to EBITDA of
$313.8 million for the three months ended December 31, 2007 and $1.0 billion
for the year ended December 31, 2007. The $1.5 billion of EBITDA generated in
2008 represents a 50.0% increase over 2007 results and a record amount for the
Company.
Net sales for the three months ended December 31, 2008 decreased 17.6% to
$1.4 billion from $1.7 billion for the three months ended December 31, 2007.
For the three months ended December 31, 2008, finished steel shipments
decreased to 1.3 million tons, a decrease of 829 thousand tons from the three
months ended December 31, 2007, primarily as a result of the current global
economic conditions. Average mill finished steel selling prices for the three
months ended December 31, 2008 increased 31.1% over the level in this same
period in 2007.
Net sales for the year ended December 31, 2008 increased 46.6% to $8.5
billion from $5.8 billion for the year ended December 31, 2007. For the year
ended December 31, 2008, finished steel shipments increased to 8.3 million
tons, an increase of 769 thousand tons from the year ended December 31, 2007,
primarily as a result of the full year inclusion of the Chaparral Steel
operations which were acquired in September 2007. Additionally, average mill
finished steel selling prices for the year ended December 31, 2008 increased
36.4% over those in 2007.
For the three months ended December 31, 2008, metal spread, the difference
between mill selling prices and scrap raw material costs, was $636 per ton, an
increase of $180 per ton from the same period in 2007. Metal spreads increased
significantly during the first nine months of 2008 in response to significant
raw material price inflation and to strong global demand for long steel
products, before retracting slightly in the fourth quarter of 2008. For the
year ended December 31, 2008, metal spread was $544 per ton, an increase of
$123 per ton from 2007.
At December 31, 2008, the Company had $688.4 million of cash and
short-term investments. In addition, the Company had approximately $759.6
million available under secured credit facilities which resulted in a total
liquidity position of approximately $1.4 billion at December 31, 2008.
During the three months ended December 31, 2008, the Company completed the
acquisitions of two scrap processors - Metro Recycling in Ontario, Canada and
Sand Springs Metal Processors in Oklahoma.
On February 18, 2009, the Board of Directors approved a quarterly cash
dividend of $0.02 per common share, payable March 20, 2009 to shareholders of
record at the close of business on March 5, 2009.
CEO Comments
Mario Longhi, President and CEO of Gerdau Ameristeel, commented:
"We faced two very different periods during 2008. During the first nine
months of the year we delivered EBITDA of $1.5 billion, while in the
challenging slowdown of the world economy during the last quarter of the year,
EBITDA decreased to $19.4 million. During this difficult time, we took
decisive action to position ourselves for the current environment which
included aggressive cost reductions. During the fourth quarter, our shipment
rates exceeded our production rates which resulted in us reducing our
investment in working capital and in the generation of $345 million of cash
during this period, to end the year with good liquidity and a strong balance
sheet.
The outlook for 2009 still remains very uncertain, however we remain
focused on our core businesses, servicing our customers, enhancing our
productivity and adjusting our cost basis as we strive to deliver returns to
our shareholders during these difficult times."
Forward Looking Statements
In this press release, "Gerdau Ameristeel" and "Company" refer to Gerdau
Ameristeel Corporation and its subsidiaries and 50%-owned joint ventures.
Certain statements in this press release, including, without limitation, the
section entitled "CEO Comments" constitute forward-looking statements. Such
statements describe the Company's assumptions, beliefs and expectations with
respect to its operations, future financial results, business strategies and
growth and expansion plans can often be identified by the words "anticipates,"
"believes," "estimates," "expects," "intends," "plans," and other words and
terms of similar meaning. The Company cautions readers that forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially from those currently projected by the Company. In addition
to those noted in the statements themselves, any number of factors could
affect actual results, including, without limitation:
Excess global steel industry capacity and the availability of competitive
substitute materials; the cyclical nature of the steel industry and the
industries served by the Company and economic conditions in North America and
worldwide; increases in the cost of steel scrap, energy and other raw
materials; steel imports and trade regulations; a change in China's
steelmaking capacity or slowdown in China's steel consumption; the Company's
participation in the consolidation of the steel industry; the substantial
capital investment and similar expenditures required in the Company's
business; unexpected equipment failures and plant interruptions or outages;
the Company's level of indebtedness; the cost of compliance with environmental
and occupational health and safety laws; the enactment of laws intended to
reduce greenhouse gases and other air emissions; the Company's ability to fund
its pension plans; the ability to renegotiate collective bargaining agreements
and avoid labor disruptions; currency exchange rate fluctuations; actions or
potential actions taken by the Company's principal stockholder, Gerdau S.A.,
the liquidity of the Company's long-term investments, including investments in
auction rate securities, and the Company's reliance on its 50%-owned joint
ventures that it does not control.
Any forward-looking statements in this press release are based on current
information as of the date of this press release and the Company does not
undertake any obligation to update any forward-looking statements to reflect
new information, future developments or events, except as required by law.
Notice of Conference Call
Gerdau Ameristeel invites you to listen to a live broadcast of its fourth
quarter conference call on Thursday, February 19, 2009, at 2:30 pm EST. The
call will be hosted by Mario Longhi, President and CEO, and Barbara Smith, VP
and CFO, and can be accessed via our Web site at www.gerdauameristeel.com. Web
cast attendees are welcome to listen to the conference in real-time or
on-demand at your convenience.
About Gerdau Ameristeel
Gerdau Ameristeel is the second largest mini-mill steel producer in North
America with annual manufacturing capacity of approximately 12 million tons of
mill finished steel products. Through its vertically integrated network of 19
mini-mills (including one 50% owned joint venture mini-mill), 23 scrap
recycling facilities and 60 downstream operations, Gerdau Ameristeel serves
customers throughout the United States and Canada. The Company's products are
generally sold to steel service centers, steel producers, or directly to
original equipment manufacturers ("OEMs") for use in a variety of industries,
including non-residential, infrastructure, commercial, industrial and
residential construction, metal building, manufacturing, automotive, mining,
cellular and electrical transmission and equipment manufacturing. Gerdau
Ameristeel's majority shareholder is the Gerdau Group, a 100+ year old steel
company, the largest producer of long steel products in the Americas and the
world leader in specialty long steel for the automotive industry. Gerdau
Ameristeel's common shares are traded on the New York Stock Exchange, and the
Toronto Stock Exchange under the ticker symbol GNA.
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(US$ in thousands, except earnings per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
------------ ------------ ------------ ------------
NET SALES $ 1,436,596 $ 1,734,603 $ 8,528,480 $ 5,806,593
OPERATING EXPENSES
Cost of sales
(exclusive of
depreciation and
amortization) 1,340,029 1,375,393 6,799,427 4,623,380
Selling and
administrative 65,840 53,554 253,222 198,032
Depreciation 60,090 51,331 219,667 143,284
Amortization of
intangibles 26,283 22,326 102,959 26,151
Impairment of
goodwill 1,200,000 - 1,200,000 -
Other operating
expense (income),
net 11,347 1,897 8,293 (1,587)
------------ ------------ ------------ ------------
2,703,589 1,504,501 8,583,568 4,989,260
(LOSS) INCOME FROM
OPERATIONS (1,266,993) 230,102 (55,088) 817,333
(LOSS) INCOME FROM
50% OWNED JOINT
VENTURES (39,162) 11,862 45,005 54,079
------------ ------------ ------------ ------------
(LOSS) INCOME BEFORE
OTHER EXPENSES
AND INCOME TAXES (1,306,155) 241,964 (10,083) 871,412
OTHER EXPENSES
Interest expense 40,180 63,985 165,607 107,738
Interest income (2,764) (6,462) (14,921) (17,977)
Foreign exchange
(gain) loss, net (13,226) (25,467) (21,682) (33,321)
Amortization of
deferred financing
costs 2,790 6,106 10,951 9,282
Writedown of
investments 13,276 8,879 59,977 8,879
Minority interest 2,329 8,246 11,952 23,080
------------ ------------ ------------ ------------
42,585 55,287 211,884 97,681
(LOSS) INCOME BEFORE
INCOME TAXES (1,348,740) 186,677 (221,967) 773,731
INCOME TAX (BENEFIT)
EXPENSE (64,700) 45,285 320,060 235,862
------------ ------------ ------------ ------------
NET (LOSS) INCOME $(1,284,040) $ 141,392 $ (542,027) $ 537,869
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
(LOSS) EARNINGS PER
COMMON SHARE -
BASIC $ (2.97) $ 0.37 $ (1.25) $ 1.66
(LOSS) EARNINGS PER
COMMON SHARE -
DILUTED $ (2.97) $ 0.37 $ (1.25) $ 1.65
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(US$ in thousands, except earnings per share data)
December 31, December 31,
2008 2007
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 482,535 $ 547,362
Short-term investments 205,817 94,591
Accounts receivable, net 677,569 705,929
Inventories 1,267,768 1,203,107
Deferred tax assets 31,414 21,779
Costs and estimated earnings in excess of
billings on uncompleted contracts 14,771 3,844
Income taxes receivable 28,455 23,986
Other current assets 22,936 25,880
------------ ------------
Total Current Assets 2,731,265 2,626,478
Investments in 50% Owned Joint Ventures 161,901 161,168
Long-Term Investments 33,189 -
Property, Plant and Equipment, net 1,808,478 1,908,617
Goodwill 2,030,011 3,050,906
Intangibles 515,736 598,528
Deferred Financing Costs 35,170 44,544
Deferred Tax Assets - 12,433
Other Assets 32,305 25,846
------------ ------------
TOTAL ASSETS $ 7,348,055 $ 8,428,520
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 182,697 $ 376,634
Accrued salaries, wages and employee benefits 148,244 169,658
Accrued interest 54,480 40,631
Income taxes payable 2,983 28,143
Accrued sales, use and property taxes 13,902 11,970
Current portion of long-term environmental
reserve 7,599 3,704
Billings in excess of costs and estimated
earnings on uncompleted contracts 45,687 17,448
Other current liabilities 20,932 25,901
Current portion of long-term borrowings 1,893 15,589
------------ ------------
Total Current Liabilities 478,417 689,678
Long-term Borrowings, Less Current Portion 3,067,994 3,055,431
Accrued Benefit Obligations 339,055 252,422
Long-term Environmental Reserve, Less Current
Portion 11,151 11,830
Other Liabilities 116,092 78,401
Deferred Tax Liabilities 356,474 433,822
Minority Interest 36,618 42,321
------------ ------------
TOTAL LIABILITIES 4,405,801 4,563,905
------------ ------------
Contingencies, Commitments and Guarantees
Shareholders' Equity
Capital stock 2,552,323 2,547,123
Retained earnings 568,567 1,253,196
Accumulated other comprehensive (loss) income (178,636) 64,296
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 2,942,254 3,864,615
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,348,055 $ 8,428,520
------------ ------------
------------ ------------
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(US$ in thousands, except earnings per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
------------ ------------ ------------ ------------
OPERATING ACTIVITIES
Net (loss) income $(1,284,040) $ 141,392 $ (542,027) $ 537,869
Adjustment to reconcile
net (loss) income to
net cash provided
by operating
activities:
Minority interest 2,329 8,246 11,952 23,080
Depreciation 60,090 51,331 219,667 143,284
Impairment of
goodwill 1,200,000 - 1,200,000 -
Amortization of
intangibles 26,283 22,326 102,959 26,151
Amortization of
deferred financing
costs 2,790 6,106 10,951 9,282
Deferred income taxes 16,134 21,979 (2,939) 20,988
Loss on disposition
of property, plant
and equipment 3,284 388 3,322 3,295
(Loss) income from
50% owned joint
ventures 39,162 (11,862) (45,005) (54,079)
Distributions from
50% owned joint
ventures - 10,000 41,829 62,078
Compensation cost
from share-based
awards (3,513) 6,663 2,464 21,522
Excess tax benefits
from share-based
payment arrangements (29) (35) (1,200) (1,159)
Writedown of
investments 13,276 8,879 59,977 8,879
Facilities closure
expenses 6,702 3,178 7,807 3,178
Writedown of inventory 38,734 - 48,116 -
Changes in operating
assets and liabilities,
net of acquisitions:
Accounts receivable 421,239 119,210 101,941 (30,037)
Inventories 382,558 13,544 (147,544) (9,710)
Other assets 13,708 (19,541) 11,020 (26,937)
Liabilities (441,659) (133,553) (315,298) (82,387)
------------ ------------ ------------ ------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 497,048 248,251 767,992 655,297
INVESTING ACTIVITIES
Purchases of property,
plant and equipment (55,068) (40,136) (168,117) (173,786)
Proceeds from
disposition of
property, plant and
equipment 1,381 84 3,261 1,371
Acquisitions (69,903) 8,115 (287,560) (4,245,647)
Opening cash from
acquisitions 2,249 157 2,249 528,980
Change in restricted
cash - - - 498
Purchases of
investments (207,516) - (207,516) (592,239)
Proceeds from sales
of investments 725 749 1,425 612,199
------------ ------------ ------------ ------------
NET CASH USED IN
INVESTING ACTIVITIES (328,132) (31,031) (656,258) (3,868,624)
FINANCING ACTIVITIES
Proceeds from
issuance of debt 577 16,689 1,076 4,087,410
Payments on term
borrowings (106) (1,300,038) (4,394) (1,450,264)
Payments of deferred
financing costs 51 (1,399) (1,635) (40,725)
Retirement of bonds - (115) - (341,759)
Cash dividends (8,646) (8,640) (142,602) (109,366)
Distributions to
subsidiary's minority
shareholder - (783) (3,065) (8,340)
Proceeds from exercise
of employee stock
options 51 42 1,195 1,258
Proceeds from issuance
of common stock, net - 1,526,785 - 1,526,785
Excess tax benefits
from share-based
payment arrangements 29 35 1,200 1,159
------------ ------------ ------------ ------------
NET CASH (USED IN)
PROVIDED BY FINANCING
ACTIVITIES (8,044) 232,576 (148,225) 3,666,158
Effect of exchange rate
changes on cash and
cash equivalents (21,538) (16,278) (28,336) (14,705)
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS 139,334 433,518 (64,827) 438,126
CASH AND CASH
EQUIVALENTS AT
BEGINNING OF PERIOD 343,201 113,844 547,362 109,236
------------ ------------ ------------ ------------
CASH AND CASH
EQUIVALENTS AT END
OF PERIOD $ 482,535 $ 547,362 $ 482,535 $ 547,362
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Supplemental
Information:
Cash payments for
income taxes $ 6,763 $ 42,973 $ 338,659 $ 201,455
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Cash payments for
interest $ 2,160 $ 52,409 $ 154,236 $ 95,861
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Non-GAAP Financial Measures
Non-GAAP Adjusted Net (Loss) Income and (loss) earnings per share, which
excludes the impact of the impairment of goodwill and the writedown of
investments is a non-GAAP financial measure. Management believes that it is
useful as a supplemental measure in assessing the operating performance of the
business. The measure is used by the Company to evaluate business results. The
Company excludes the impairment of goodwill and the writedown of investments
because it believes they are not representative of the ongoing results of
operations of the Company's business. Below is a reconciliation of this
Non-GAAP measure to net (loss) income for the periods indicated, excluding the
impairment of goodwill and writedown of investments.
For the Three Months For the Three Months
Ended - Unaudited Ended - Unaudited
December Diluted December Diluted
31, 2008 EPS 31, 2007 EPS
------------ ------------ ------------ ------------
($000s)
Reconciliation of net
(loss) income to
Non-GAAP Adjusted
Net (Loss) Income:
Net (loss) income $(1,284,040) $ (2.97) $ 141,392 $ 0.37
Adjustment for
impairment of
goodwill 1,200,000 2.78 - -
Adjustment for
writedown of
investments 13,276 0.03 8,879 0.02
------------ ------------ ------------ ------------
Non-GAAP Adjusted
Net (Loss) Income
and earnings
(loss) per share $ (70,764) $ (0.16) $ 150,271 $ 0.39
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
For the Year Ended For the Year Ended
- Unaudited - Unaudited
December Diluted December Diluted
31, 2008 EPS 31, 2007 EPS
------------ ------------ ------------ ------------
($000s)
Reconciliation of net
(loss) income to
Non-GAAP Adjusted
Net Income:
Net (loss) income $ (542,027) $ (1.25) $ 537,869 $ 1.65
Adjustment for
impairment of
goodwill 1,200,000 2.78 - -
Adjustment for
writedown of
investments 59,977 0.14 8,879 0.03
------------ ------------ ------------ ------------
Non-GAAP Adjusted
Net Income and
earnings per
share $ 717,950 $ 1.67 $ 546,748 $ 1.68
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
EBITDA (EBITDA is calculated by adding earnings before interest and other
expense on debt, taxes, depreciation and amortization, writedown of
investments, minority interest, cash distributions from 50% owned joint
ventures, impairment of goodwill, and foreign exchange gain/loss, net; and
deducting interest income and earnings from 50% owned joint ventures) is a
non-GAAP measure that management believes is a useful supplemental measure of
cash available prior to debt service, capital expenditures and income tax.
Investors are cautioned that EBITDA should not be construed as an alternative
to net income determined in accordance with GAAP as an indicator of the
Company's performance or to cash flows from operations as a measure of
liquidity and cash flows. EBITDA does not have a standardized meaning
prescribed by GAAP. The Company's method of calculating EBITDA may differ from
the methods used by other companies and, accordingly, it may not be comparable
to similarly titled measures used by other companies. Reconciliation of EBITDA
to net income is shown below:
For the Three Months
Ended - Unaudited
-------------------------
December 31, December 31,
2008 2007
------------ ------------
($000s)
Net (loss) income $(1,284,040) $ 141,392
Income tax (benefit) expense (64,700) 45,285
Interest and other expense on debt 40,180 63,986
Interest income (2,764) (6,463)
Depreciation 60,090 51,330
Amortization of intangibles 26,283 22,327
Impairment of goodwill 1,200,000 -
Amortization of deferred financing costs 2,790 6,106
Loss (income) from 50% owned joint ventures 39,162 (11,862)
Cash distribution from 50% owned joint ventures - 10,000
Foreign exchange (gain) loss, net (13,226) (25,467)
Writedown of investments 13,276 8,879
Minority interest 2,329 8,246
------------ ------------
EBITDA $ 19,380 $ 313,759
------------ ------------
------------ ------------
For the Year Ended
- Unaudited
-------------------------
December 31, December 31,
2008 2007
------------ ------------
($000s)
Net (loss) income $ (542,027) $ 537,869
Income tax expense 320,060 235,862
Interest and other expense on debt 165,607 107,738
Interest income (14,921) (17,977)
Depreciation 219,667 143,284
Amortization of intangibles 102,959 26,151
Impairment of goodwill 1,200,000 -
Amortization of deferred financing costs 10,951 9,282
Income from 50% owned joint ventures (45,005) (54,079)
Cash distribution from 50% owned joint ventures 41,829 62,078
Foreign exchange (gain) loss, net (21,682) (33,321)
Writedown of investments 59,977 8,879
Minority interest 11,952 23,080
------------ ------------
EBITDA $ 1,509,367 $ 1,048,846
------------ ------------
------------ ------------
SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION - UNAUDITED
THE INFORMATION IN THIS TABLE EXCLUDES 50% OWNED JOINT VENTURES
For the Three Months Ended
December 31, 2008 December 31, 2007
------------------------- -------------------------
Tons Tons
------------ ------------
Production
Melt Shops 1,032,715 2,231,690
Rolling Mills 971,335 2,129,814
Tons % Tons %
------------ ------------ ------------ ------------
Finished Steel
Shipments
Rebar 213,371 16% 419,271 19%
Merchant/Special
Sections/Structurals 734,560 55% 1,242,898 57%
Rod 82,742 6% 172,068 8%
Fabricated Steel 312,558 23% 338,170 16%
------------ ------------ ------------ ------------
Total Shipments 1,343,231 100% 2,172,407 100%
$/Ton $/Ton
------------ ------------
Selling Prices
Mill external
shipments $ 901 $ 687
Fabricated steel
shipments 1,280 929
Scrap Charged 265 231
Metal Spread (Selling
price less scrap)
Mill external
shipments 636 456
Fabricated steel
shipments 1,015 698
Mill manufacturing cost 489 294
For the Year Ended
December 31, 2008 December 31, 2007
------------------------- -------------------------
Tons Tons
------------ ------------
Production
Melt Shops 8,359,903 7,525,318
Rolling Mills 7,948,527 7,377,855
Tons % Tons %
------------ ------------ ------------ ------------
Finished Steel
Shipments
Rebar 1,564,045 19% 1,680,617 22%
Merchant/Special
Sections/
Structurals 4,710,754 57% 3,730,125 49%
Rod 620,927 7% 733,322 10%
Fabricated Steel 1,424,128 17% 1,407,164 19%
------------ ------------ ------------ ------------
Total Shipments 8,319,854 100% 7,551,228 100%
$/Ton $/Ton
------------ ------------
Selling Prices
Mill external
shipments $ 884 $ 648
Fabricated steel
shipments 1,150 889
Scrap Charged 340 227
Metal Spread (Selling
price less scrap)
Mill external
shipments 544 421
Fabricated steel
shipments 810 662
Mill manufacturing
cost 348 272
50% Owned Joint Venture Results
The following table summarizes the results of the Company's portion of its
50% owned joint ventures, primarily Gallatin Steel, a flat rolled mill joint
venture.
Three Months Ended Year Ended
- Unaudited - Unaudited
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Tons Shipped 105,962 199,359 709,685 802,068
Operating (Loss)
Income $ (38,673) $ 11,879 $ 46,303 $ 55,383
Net (Loss) Income (39,162) 11,862 45,005 54,079
EBITDA (34,667) 14,968 58,731 66,938
$/Ton $/Ton $/Ton $/Ton
----- ----- ----- -----
Average Selling
Price $ 686 $ 540 $ 815 $ 538
Scrap Charged 444 275 454 266
Metal Spread 242 265 361 272
Operating (Loss) Income (365) 60 65 69
EBITDA (327) 75 83 83
SOURCE Gerdau Ameristeel Corporation
-0- 02/19/2009
/CONTACT: Mario Longhi, President and Chief Executive Officer, Gerdau
Ameristeel, (813) 207-2346, mlonghi@gerdauameristeel.com; Barbara R. Smith,
Vice President and Chief Financial Officer, Gerdau Ameristeel, (813) 319-4324,
basmith@gerdauameristeel.com/
(GNA GNA.)
CO: Gerdau Ameristeel Corporation
ST: Florida
IN: MNG
SU: ERN CCA
PR
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9857 02/19/2009 09:17 EST http://www.prnewswire.com
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