Gerdau Ameristeel Announces Selected Third Quarter 2007 Financial and Operating Data



    TAMPA, FL, Oct. 19 /CNW/ - Gerdau Ameristeel Corporation (NYSE:   GNA; TSX:
GNA) today reports certain selected comparative financial and operating data
for the three months ended September 30, 2007 and 2006 and the nine months
ended September 30, 2007 and 2006. As previously announced, Gerdau Ameristeel
completed the acquisition of Chaparral Steel Company ("Chaparral") on
September 14, 2007. All data presented below includes results for Chaparral
from the date of the acquisition on September 14, 2007 to and including
September 30, 2007. The financial and operating data presented in this press
release will be included in Gerdau Ameristeel's unaudited consolidated
financial statements for the nine months ended September 30, 2007 and
accompanying management's discussion and analysis of results of operations and
financial condition, which are expected to be released on or about November 7,
2007. All data included in this press release is preliminary and approximate.

    Three months ended September 30, 2007 compared to three months ended
    September 30, 2006

    For the three months ended September 30, 2007, Gerdau Ameristeel's mill
external and fabricated steel shipments were approximately 1.79 million tons,
an increase of approximately 123,000 tons, or 7%, compared to the three months
ended September 30, 2006. The average mill external shipment selling prices
were approximately $659 per ton for the three months ended September 30, 2007,
an increase of approximately $67 per ton or 11% from the average mill external
shipment selling prices for the three months ended September 30, 2006. Scrap
raw material cost used in production increased by approximately $16 per ton,
or 8%, to approximately $219 per ton for the three months ended September 30,
2007 compared to $203 per ton for the three months ended September 30, 2006.
Metal spread, the difference between mill selling prices and scrap metal cost,
increased approximately $50 per ton for the three months ended September 30,
2007 compared to the three months ended September 30, 2006.

    Nine months ended September 30, 2007 compared to nine months ended
    September 30, 2006

    For the nine months ended September 30, 2007, Gerdau Ameristeel's mill
external and fabricated steel shipments were approximately 5.38 million tons,
an increase of approximately 309,000 tons, or 6%, compared to the nine months
ended September 30, 2006. The average mill external shipment selling prices
were approximately $631 per ton for the nine months ended September 30, 2007,
an increase of approximately $60 per ton or 11% from the average mill external
shipment selling prices for the nine months ended September 30, 2006. Scrap
raw material cost used in production increased by approximately $26 per ton,
or 13%, to approximately $223 per ton for the nine months ended September 30,
2007 compared to $197 per ton for the nine months ended September 30, 2006.
Metal spread, the difference between mill selling prices and scrap metal cost,
increased approximately $35 per ton for the nine months ended September 30,
2007 compared to the nine months ended September 30, 2006.

    Liquidity

    Cash, cash equivalents and short-term investments of Gerdau Ameristeel as
at September 30, 2007 were $218 million. As at September 30, 2007, Gerdau
Ameristeel had approximately $4.35 billion in total debt, including
$3.9 billion of loans incurred in connection with the acquisition of
Chaparral. Gerdau Ameristeel intends to use the net proceeds from its
previously announced proposed offering of common shares to partially repay the
loans incurred for the acquisition of Chaparral. Gerdau Ameristeel expects
that the combination with Chaparral's operations will generate annual pre-tax
operating synergies in excess of $55 million by the end of 2008 and an
additional approximately $20 million of annual tax-related synergies by the
end of 2008.

    About Gerdau Ameristeel

    Gerdau Ameristeel is the second largest minimill steel producer in North
America with annual manufacturing capacity of approximately 11.7 million tons
of mill finished steel products. Through its vertically integrated network of
19 minimills (including one 50%-owned joint venture minimill), 19 scrap
recycling facilities and 62 downstream operations, Gerdau Ameristeel serves
customers throughout North America. The company's products are generally sold
to steel service centers, steel fabricators, or directly to original equipment
manufacturers for use in a variety of industries, including construction,
metal building, manufacturing, automotive, mining, cellular and electrical
transmission and equipment manufacturing. The common shares of Gerdau
Ameristeel are traded on the New York Stock Exchange and the Toronto Stock
Exchange under the symbol GNA.
    Gerdau Ameristeel is approximately 66.5% owned by Gerdau S.A.

    About Gerdau Group

    Gerdau Group is the leader in the production of long steel products in
the Americas and ranks as the 14th largest steelmaking company worldwide. It
has approximately 35,000 employees and is present in thirteen countries:
Argentina, Brazil, Canada, Chile, Colombia, Dominican Republic, India, Mexico,
Peru, Spain, the United States, Uruguay and Venezuela. Gerdau Group has an
annual installed capacity of more than 20 million metric tons of steel and is
one of the largest recyclers in the Americas. With more than 100 years of
history, it has taken a path of international growth in line with the
steelmaking consolidation process. The Gerdau Group companies have stock
listed on the Sao Paulo (Bovespa: GGBR4, GGBR3, GOAL4 e GOAL3) New York (NYSE:  
GNA, GGB), Toronto (GNA) and Madrid (Latibex: XGGB) stock exchanges.

    Forward Looking Statements

    This press release contains forward looking statements with respect to
Gerdau Ameristeel Corporation, including its proposed offering of common
shares and use of net proceeds, business operations, strategy, financial
performance, and condition. Although management believes that the expectations
reflected in such forward looking statements are reasonable, such statements
involve risks and uncertainties. Actual results may differ materially from
those expressed or implied by such forward looking statements. Factors that
could cause actual results to differ materially from expectations include,
among other things, risks related to completing the offering of common shares,
including capital markets conditions, and general economic and market factors,
including demand for steel products, availability and costs of electricity,
natural gas and raw materials, government regulations and trade policies
affecting steel imports or exports in Canada and the United States, and other
factors discussed in materials filed with applicable securities regulatory
authorities from time to time.

    Incorporation By Reference

    This press release is incorporated by reference in Gerdau Ameristeel's
preliminary short form prospectus dated October 12, 2007 filed with the
securities regulatory authorities in each of the provinces and territories of
Canada and in its registration statement on Form F-10 dated October 12, 2007
filed with the United States Securities and Exchange Commission.

    %SEDAR: 00000593E




For further information:

For further information: Barbara R. Smith, Vice President Finance and
Chief Financial Officer, (813) 319-4324, BAsmith@gerdauameristeel.com

Organization Profile

GERDAU AMERISTEEL CORPORATION

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