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8/6/2009
Gerdau Ameristeel Announces 2009 Second Quarter Results TAMPA, FL, Aug 06, 2009 /PRNewswire-FirstCall via COMTEX/ -- Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA) today reported a net loss of $57.6 million ($0.13 per share fully diluted) for the three months ended June 30, 2009, in comparison to net income of $262.1 million ($0.60 per share fully diluted) for the three months ended June 30, 2008. Included in these results is a $36.5 million pre-tax non-cash charge related to actions announced in early June to close or suspend production at certain of the Company's steel mills. Excluding these charges, the Non-GAAP Adjusted Net Loss was $30.7 million ($0.07 per share fully diluted).
For the six months ended June 30, 2009, the Company incurred a net loss of $90.3 million ($0.21 per share fully diluted) compared to net income of $425.1 million ($0.98 per share fully diluted) for the six months ended June 30, 2008. The Non-GAAP Adjusted Net Loss for the six months ended June 30, 2009, excluding the non-cash charges described above, was $63.4 million ($0.15 per share fully diluted).
During the second quarter of 2009, net sales were $1.0 billion and remained flat in comparison to the three months ended March 31, 2009, but decreased 60% from the $2.5 billion for the three months ended June 30, 2008. Weighted average mill selling price decreased 16% or $116 per ton in comparison to the three months ended March 31, 2009 and decreased 31% or $270 per ton in comparison to the second quarter of 2008. Finished steel shipments were 1.3 million tons for the three months ended June 30, 2009, an increase of 13% in comparison to the first quarter of 2009 but a decrease of 46% from the three months ended June 30, 2008.
Net sales for the six months ended June 30, 2009 were $2.1 billion compared to net sales of $4.6 billion from the same period in 2008. Weighted average mill selling price for the six months ended June 30, 2009 decreased 18% or $143 per ton compared to the same period in 2008 while finished steel shipments decreased 48% to 2.5 million tons for the six months ended June 30, 2009 compared to 4.9 million tons for the same period in 2008.
For the three months ended June 30, 2009, metal spread, the difference between mill selling prices and scrap raw material costs, was $440 per ton, a decrease of $59 per ton from the same period in 2008. In comparison to the three months ended March 31, 2009, metal spreads decreased by $88 per ton as the decrease in selling prices was much greater than the decrease in scrap raw material costs. Scrap raw material cost used in production for the three months ended June 30, 2009 was $172 per ton, a decrease of $211 per ton compared to the three months ended June 30, 2008 and a decrease of $28 per ton compared to the three months ended March 31, 2009. For the six months ended June 30, 2009, metal spread was $481 per ton and remained flat in comparison to the same period in the prior year.
EBITDA was $64.8 million for the three months ended June 30, 2009, compared to EBITDA of $521.1 million for the three months ended June 30, 2008. Despite the reduction in metal spread outlined above, EBITDA improved 33% from the $48.7 million for the three months ended March 31, 2009. For the six months ended June 30, 2009, EBITDA was $113.5 million compared to EBITDA of $908.5 million for the six months ended June 30, 2008.
Included in cost of sales (exclusive of depreciation and amortization) for the three and six months ended June 30, 2009 is a pre-tax charge of $14.6 million and $33.0 million to write down the value of certain of the Company's inventory to its current market value. The writedown of the Company's inventory was primarily related to the impact of certain high-priced raw materials purchased by the Company prior to the decline in market selling prices for the Company's finished products.
During the three months ended June 30, 2009, the Company incurred a $14.5 million foreign exchange loss as the Canadian dollar strengthened approximately 8% in comparison to the US dollar. This charge arose from the revaluation of US dollar investments held by our Canadian entities.
At June 30, 2009, the Company had $1.1 billion of cash and short-term investments an increase of $443.9 million from the levels at December 31, 2008. In addition, the Company had approximately $538.7 million of availability under secured credit facilities which resulted in a total liquidity position of approximately $1.7 billion at June 30, 2009. On July 17, 2009, the Company announced its intention to utilize some of its cash to fully redeem its $405 million 10 3/8% senior notes due in 2011 on August 31, 2009.
The Company announced in early June that it would suspend production at the Sayreville, New Jersey steel mill, close the rolling mill in Perth Amboy, New Jersey and also enter into discussions with the United Steel Workers regarding the potential closure of the Company's steel mill located in Sand Springs, Oklahoma. The Company has entered into a closing agreement with the USW with respect to the Perth Amboy facility and discussions regarding the potential closure of Sand Springs facility are continuing. However, after further evaluation of our markets and production capabilities, the Company has decided not to suspend production at the Sayreville mill. As noted above, the Company recorded a $36.5 million charge during the three months ended June 30, 2009. Depending on the outcome of the Sand Springs discussions, further charges of up to $50 million, on an after tax basis, could be incurred.
CEO Comments
Mario Longhi, President and CEO of Gerdau Ameristeel, commented:
"While market conditions continue to present a difficult operating environment, we did see promising signs that conditions may have reached a bottom. During the quarter, we saw a stabilization of volumes as destocking by our customers appears to be slowing, as well as a firming of steel prices across all steel products.
We have made tremendous progress on further reducing costs and implementing productivity initiatives which have resulted in improved EBITDA despite the pressure experienced with respect to selling prices. In addition, we continue to focus on further strengthening our balance sheet which has resulted in continued liquidity growth. We believe this focus will ensure that Gerdau Ameristeel can continue to perform in an otherwise difficult operating environment and position us well for when conditions improve."
IFRS Conversion
The Company has applied with the Ontario Securities Commission (the "OSC") for approval to adopt International Financial Reporting Standards ("IFRS") with an adoption date of January 1, 2009 and a transition date of January 1, 2008. The Company believes that the adoption of IFRS is in the best interests of the Company and the users of its financial information because the adoption of IFRS-IASB will align the bases of accounting under which the Company and its majority owner, Gerdau S.A., prepare their financial statements and increase the comparability of the Company's financial statements to those of a number of global issuers, including competitors within the steel industry, who already prepare, or will soon be required to prepare, financial statements in accordance with IFRS.
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 second quarter conference call on Thursday, August 6, 2009, at 3:00 pm EST. The call will be hosted by Mario Longhi, President and CEO, and Barbara Smith, VP and CFO, and can be accessed via the Company's 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 57 downstream operations, Gerdau Ameristeel serves customers throughout the United States and Canada. The Company's products are generally sold to steel service centers, steel fabricators, 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 leading company in the production of long steel in the Americas and one of the major specialty long steel suppliers in the world. 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
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(US$ in thousands, except earnings per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2009 2008 2009 2008
------------- ------------ ------------- -----------
NET SALES $ 1,035,964 $ 2,545,810 $ 2,073,663 $ 4,577,472
OPERATING EXPENSES
Cost of sales
(exclusive of
depreciation and
amortization) 906,457 1,980,192 1,837,334 3,580,819
Selling and
administrative 62,544 74,829 118,844 129,405
Depreciation 52,764 51,984 105,093 104,504
Amortization of
intangibles 16,490 26,257 33,098 50,420
Facility closure
costs 36,545 - 36,545 -
Other operating
expense (income),
net 2,129 (340) 4,425 (890)
------------- ------------ ------------- -----------
1,076,929 2,132,922 2,135,339 3,864,258
(LOSS) INCOME FROM
OPERATIONS (40,965) 412,888 (61,676) 713,214
(LOSS) INCOME FROM 50%
OWNED JOINT VENTURES (5,256) 41,727 (15,500) 60,107
------------- ------------ ------------- -----------
(LOSS) INCOME BEFORE
OTHER EXPENSES
AND INCOME TAXES (46,221) 454,615 (77,176) 773,321
OTHER EXPENSES
Interest expense 35,581 35,564 74,731 87,403
Interest income (1,762) (2,638) (3,163) (9,301)
Foreign exchange loss
(gain), net 14,488 (451) 11,755 (4,329)
Amortization of
deferred financing
costs 3,001 2,691 5,807 5,382
Writedown of
investments - 17,004 - 39,671
------------- ------------ ------------- -----------
51,308 52,170 89,130 118,826
(LOSS) INCOME BEFORE
INCOME TAXES (97,529) 402,445 (166,306) 654,495
INCOME TAX (BENEFIT)
EXPENSE (40,746) 136,795 (74,879) 221,442
------------- ------------ ------------- -----------
NET (LOSS) INCOME (56,783) 265,650 (91,427) 433,053
Less: Net income (loss)
attributable to
non-controlling
interest 797 3,543 (1,175) 7,938
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NET (LOSS) INCOME
ATTRIBUTABLE TO
GERDAU AMERISTEEL &
SUBSIDIARIES $ (57,580) $ 262,107 $ (90,252) $ 425,115
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------------- ------------ ------------- -----------
EARNINGS PER SHARE
ATTRIBUTABLE TO
GERDAU AMERISTEEL &
SUBSIDIARIES
(Loss) earnings
per common share
- basic $ (0.13) $ 0.61 $ (0.21) $ 0.98
(Loss) earnings per
common share
- diluted $ (0.13) $ 0.60 $ (0.21) $ 0.98
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(US$ in thousands, except earnings per share data)
(Unaudited)
June 30, December 31,
2009 2008
------------ ------------
------------ ------------
ASSETS
Current Assets
Cash and cash
equivalents $ 873,590 $ 482,535
Short-term investments 258,631 205,817
Accounts receivable, net 533,214 677,569
Inventories 856,414 1,267,768
Deferred tax assets 25,478 31,414
Costs and estimated earnings
in excess of billings
on uncompleted contracts 14,232 14,771
Income taxes receivable 69,423 28,455
Other current assets 24,584 22,936
------------ ------------
Total Current Assets 2,655,566 2,731,265
Investments in 50%
Owned Joint Ventures 147,797 161,901
Long-term Investments 32,414 33,189
Property, Plant and Equipment, net 1,730,803 1,808,478
Goodwill 1,958,721 1,952,011
Intangibles 482,625 515,736
Deferred Financing Costs 43,292 35,170
Deferred Tax Assets 3,745 -
Other Assets 29,237 32,305
------------ ------------
TOTAL ASSETS $ 7,084,200 $ 7,270,055
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and
accrued liabilities $ 207,751 $ 182,697
Accrued salaries, wages and
employee benefits 96,895 148,244
Accrued interest 44,090 54,480
Income taxes payable 580 2,983
Accrued sales, use and property taxes 13,512 13,902
Current portion of long-term
environmental reserve 5,097 7,599
Billings in excess of costs and
estimated earnings on
uncompleted contracts 30,495 45,687
Other current liabilities 14,064 20,932
Current portion of long-term borrowings 3,183 1,893
------------ ------------
Total Current Liabilities 415,667 478,417
Long-term Borrowings, Less Current Portion 3,063,360 3,067,994
Accrued Benefit Obligations 301,709 339,055
Long-term Environmental Reserve,
Less Current Portion 13,417 11,151
Other Liabilities 73,444 116,092
Deferred Tax Liabilities 324,464 323,854
------------ ------------
TOTAL LIABILITIES 4,192,061 4,336,563
------------ ------------
Contingencies, Commitments and Guarantees
Shareholders' Equity
Capital stock 2,555,535 2,552,323
Retained earnings 424,289 523,187
Accumulated other comprehensive
(loss) income (119,535) (178,636)
------------ ------------
Total Gerdau Ameristeel &
Subsidiaries Shareholders' equity 2,860,289 2,896,874
Non-controlling interest 31,850 36,618
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 2,892,139 2,933,492
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,084,200 $ 7,270,055
------------ ------------
------------ ------------
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(US$ in thousands, except earnings per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
------------- ------------ ------------- -----------
OPERATING ACTIVITIES
Net (loss) income $ (56,783) $ 265,650 $ (91,427) $ 433,053
Adjustment to
reconcile net
(loss) income
to net cash provided
by (used in)
operating activities:
Depreciation 52,764 51,984 105,093 104,504
Amortization of
intangibles 16,490 26,257 33,098 50,420
Amortization of
deferred
financing costs 3,001 2,691 5,807 5,382
Deferred income
taxes (4,683) (14,134) (8,453) (15,968)
Loss (gain) on
disposition of
property, plant
and equipment 533 254 1,467 (269)
Loss (income) from
50% owned
joint ventures 5,256 (41,727) 15,500 (60,107)
Distributions from
50% owned
joint ventures - 30,000 405 40,404
Compensation cost
from share-based
awards 5,271 12,611 3,969 15,799
Excess tax benefits
from share-based
payment
arrangements (91) (469) (112) (1,133)
Realized loss on
writedown of
investments - 17,004 - 39,671
Facility closure
costs 36,545 - 36,545 990
Writedown of
inventory 14,618 726 33,044 2,937
Changes in operating
assets and liabilities,
net of acquisitions:
Accounts receivable 37,518 (228,495) 147,443 (357,691)
Inventories 181,654 (225,761) 383,176 (274,895)
Other assets (2,498) (1,951) 1,868 (3,085)
Liabilities (5,060) 97,082 (151,012) 182,976
------------- ------------ ------------- -----------
NET CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES 284,535 (8,278) 516,411 162,988
INVESTING ACTIVITIES
Purchases of property,
plant and equipment (22,816) (35,004) (59,100) (65,710)
Proceeds from
disposition
of property,
plant and
equipment 234 312 1,413 1,614
Acquisitions - (203,500) - (203,500)
Purchases of
investments (218,169) - (487,857) -
Proceeds from sales
of investments 290,482 700 436,179 700
------------- ------------ ------------- -----------
NET CASH PROVIDED BY
(USED IN) INVESTING
ACTIVITIES 49,731 (237,492) (109,365) (266,896)
FINANCING ACTIVITIES
Proceeds from
issuance of debt - 1 - 499
Payments on term
borrowings (1,021) (4,234) (3,647) (4,259)
Payments of
deferred
financing costs (13,921) (108) (13,921) (108)
Cash dividends - (8,645) (8,646) (125,310)
Distributions to
subsidiary's
noncontrolling
interest - - (3,593) (3,065)
Proceeds from
exercise of
employee stock
options 1,565 630 1,659 1,124
Excess tax benefits
from share-based
payment
arrangements 91 469 112 1,133
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NET CASH USED IN
FINANCING ACTIVITIES (13,286) (11,887) (28,036) (129,986)
Effect of exchange
rate changes on
cash and cash
equivalents 17,011 452 12,045 (1,728)
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INCREASE (DECREASE)
IN CASH AND
CASH EQUIVALENTS 337,991 (257,205) 391,055 (235,622)
CASH AND CASH
EQUIVALENTS AT
BEGINNING OF PERIOD 535,599 568,945 482,535 547,362
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CASH AND CASH
EQUIVALENTS AT
END OF PERIOD $ 873,590 $ 311,740 $ 873,590 $ 311,740
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------------- ------------ ------------- -----------
Cash payments
for income taxes $ (22,494) $ 176,998 $ (19,309) $ 195,045
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------------- ------------ ------------- -----------
Cash payments
for interest $ 1,699 $ 4,029 $ 81,577 $ 78,113
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Non-GAAP Financial Measures
Non-GAAP Adjusted Net Income (Loss) and earnings (loss) per share, which excludes the impact of facility closure costs 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 facility closure costs 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 facility closure costs and writedown of investments.
For the Three Months For the Three Months
Ended Ended
- Unaudited - Unaudited
June 30, Diluted June 30, Diluted
2009 EPS 2008 EPS
------------- ------------ ------------- -----------
($000s)
Reconciliation of
net (loss) income
to Non-GAAP Adjusted
Net (Loss) Income:
Net (loss) income
attributable to
Gerdau Ameristeel
& Subsidiaries $ (57,580) $ (0.13) $ 262,107 $ 0.60
Adjustment for
facility closure
costs 36,545 0.08 - -
Adjustment for
income tax on
facility closure
costs (9,704) (0.02) - -
Adjustment for
writedown of
investments - - 17,004 0.04
------------- ------------ ------------- -----------
Non-GAAP Adjusted
Net (Loss) Income
and (loss)
earnings per share
attributable to
Gerdau Ameristeel
& Subsidiaries $ (30,739) $ (0.07) $ 279,111 $ 0.64
------------- ------------ ------------- -----------
------------- ------------ ------------- -----------
For the Six Months For the Six Months
Ended Ended
- Unaudited - Unaudited
June 30, Diluted June 30, Diluted
2009 EPS 2008 EPS
------------- ------------ ------------- -----------
($000s)
Reconciliation of net
(loss) income to
Non-GAAP Adjusted
Net Income:
Net (loss) income
attributable to
Gerdau Ameristeel
& Subsidiaries $ (90,252) $ (0.21) $ 425,115 $ 0.98
Adjustment for
facility closure
costs 36,545 0.08 - -
Adjustment for
income tax on
facility closure
costs (9,704) (0.02) - -
Adjustment for
writedown of
investments - - 39,671 0.09
------------- ------------ ------------- -----------
Non-GAAP Adjusted
Net (Loss) Income
and (loss)
earnings per share
attributable
to Gerdau
Ameristeel
& Subsidiaries $ (63,411) $ (0.15) $ 464,786 $ 1.07
------------- ------------ ------------- -----------
------------- ------------ ------------- -----------
EBITDA (EBITDA is calculated by adding (loss) earnings before interest and other expense on debt, taxes, depreciation and amortization, writedown of investments, cash distributions from 50% owned joint ventures, facility closure costs, and foreign exchange gain/loss, net; and deducting interest income and (loss) income 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
---------------------------------------
June 30, June 30,
2009 2008
------------ ------------
($000s)
Net (loss) income (56,783) 265,650
Income tax (benefit) expense (40,746) 136,795
Interest and other expense on debt 35,581 35,564
Interest income (1,762) (2,638)
Depreciation 52,764 51,984
Amortization of intangibles 16,490 26,257
Facility closure costs 36,545 -
Amortization of deferred financing costs 3,001 2,691
Loss (income) from 50% owned
joint ventures 5,256 (41,727)
Cash distribution from 50%
owned joint ventures - 30,000
Foreign exchange (gain) loss, net 14,488 (451)
Writedown of investments - 17,004
------------ ------------
EBITDA $ 64,834 $ 521,129
------------ ------------
------------ ------------
For the Six Months Ended - Unaudited
---------------------------------------
June 30, June 30,
2009 2008
------------ ------------
($000s)
Net (loss) income (91,427) 433,053
Income tax expense (74,879) 221,442
Interest and other expense on debt 74,731 87,403
Interest income (3,163) (9,301)
Depreciation 105,093 104,504
Amortization of intangibles 33,098 50,420
Facility closure costs 36,545 -
Amortization of deferred financing costs 5,807 5,382
Income from 50% owned joint ventures 15,500 (60,107)
Cash distribution from 50% owned
joint ventures 405 40,404
Foreign exchange (gain) loss, net 11,755 (4,329)
Writedown of investments - 39,671
------------ ------------
EBITDA $ 113,465 $ 908,542
------------ ------------
------------ ------------
SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION - UNAUDITED
THE INFORMATION IN THIS TABLE EXCLUDES 50% OWNED JOINT VENTURES
For the Three Months Ended
June 30, 2009 June 30, 2008
------------------------ -------------------------
Tons Tons
----------- -----------
Production
Melt Shops 1,341,067 2,504,088
Rolling Mills 1,215,710 2,406,082
Tons % Tons %
----------- ----------- ----------- ------------
Finished Steel Shipments
Rebar 266,169 20% 489,694 20%
Merchant/Special
Sections/
Structurals 652,549 49% 1,423,274 57%
Rod 123,501 9% 193,421 7%
Fabricated Steel 298,758 22% 393,696 16%
----------- ----------- ----------- ------------
Total Shipments 1,340,977 100% 2,500,085 100%
$/Ton $/Ton
----------- -----------
Selling Prices
Mill external
shipments $ 612 $ 882
Fabricated
steel shipments 941 1,098
Scrap Charged 172 383
Metal Spread
(Selling price
less scrap)
Mill external shipments 440 499
Fabricated steel
shipments 769 715
Mill manufacturing cost 308 332
SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION - UNAUDITED
THE INFORMATION IN THIS TABLE EXCLUDES 50% OWNED JOINT VENTURES
For the Six Months Ended
June 30, 2009 June 30, 2008
------------------------ -------------------------
Tons Tons
----------- -----------
Production
Melt Shops 2,491,961 4,931,262
Rolling Mills 2,421,669 4,708,986
Tons % Tons %
----------- ----------- ----------- ------------
Finished Steel
Shipments
Rebar 458,669 18% 994,941 20%
Merchant/Special
Sections/
Structurals 1,254,435 50% 2,775,125 57%
Rod 240,668 9% 392,727 8%
Fabricated Steel 572,467 23% 715,896 15%
----------- ----------- ----------- ------------
Total Shipments 2,526,239 100% 4,878,689 100%
$/Ton $/Ton
----------- -----------
Selling Prices
Mill external
shipments $ 666 $ 809
Fabricated steel
shipments 1,013 1,036
Scrap Charged 185 331
Metal Spread
(Selling price
less scrap)
Mill external shipments 481 478
Fabricated steel
shipments 828 705
Mill manufacturing cost 333 319
SOURCE Gerdau Ameristeel Corporation
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