Gerdau Ameristeel Announces 2009 Second Quarter Results



    TAMPA, FL, Aug. 6 /CNW/ - 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

                         ------------- ------------ ------------- -----------

    NET (LOSS) INCOME
     ATTRIBUTABLE TO
     GERDAU AMERISTEEL &
     SUBSIDIARIES         $   (57,580) $   262,107  $   (90,252) $   425,115
                         ------------- ------------ ------------- -----------
                         ------------- ------------ ------------- -----------

    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
                         ------------- ------------ ------------- -----------
    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)
                         ------------- ------------ ------------- -----------

    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
                         ------------- ------------ ------------- -----------

    CASH AND CASH
     EQUIVALENTS AT
     END OF PERIOD        $   873,590  $   311,740  $   873,590  $   311,740
                         ------------- ------------ ------------- -----------
                         ------------- ------------ ------------- -----------


      Cash payments
       for income taxes   $   (22,494) $   176,998  $   (19,309) $   195,045
                         ------------- ------------ ------------- -----------
                         ------------- ------------ ------------- -----------

      Cash payments
       for interest       $     1,699  $     4,029  $    81,577  $    78,113
                         ------------- ------------ ------------- -----------
                         ------------- ------------ ------------- -----------


    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
    

    %SEDAR: 00000593E




For further information:

For further information: 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

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GERDAU AMERISTEEL CORPORATION

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