(Source: Canada Newswire)TAMPA, FL, Nov. 5 /CNW/ - Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA) today reported a net loss of $25.4 million ($0.06 per share fully diluted) for the three months ended September 30, 2009, in comparison to net income of $316.9 million ($0.73 per share fully diluted) for the three months ended September 30, 2008. Included in these results is a $78.5 million pre-tax charge related to actions announced earlier this year to stop production at certain of the Company's steel mills and a pre-tax charge of $11.9 million related to the early extinguishment of certain debt obligations. Excluding these charges, the Non-GAAP Adjusted Net Income was $33.5 million ($0.08 per share fully diluted).

For the nine months ended September 30, 2009, the Company incurred a net loss of $115.6 million ($0.27 per share fully diluted) compared to net income of $742.0 million ($1.71 per share fully diluted) for the nine months ended September 30, 2008. The Non- GAAP Adjusted Net Loss for the nine months ended September 30, 2009, excluding the charges described above, was $30.0 million ($0.07 per share fully diluted).

During the third quarter of 2009, net sales were $1.1 billion, an increase of $110.2 million in comparison to the three months ended June 30, 2009, but a decrease of 56% from the $2.5 billion for the three months ended September 30, 2008. Weighted average mill selling price remained flat in comparison to the three months ended June 30, 2009 but represented a decrease of 41% or $437 per ton in comparison to the third quarter of 2008. Finished steel shipments were 1.5 million tons for the three months ended September 30, 2009, an increase of 12% in comparison to the second quarter of 2009 but a decrease of 29% from the three months ended September 30, 2008.

Net sales for the nine months ended September 30, 2009 were $3.2 billion compared to net sales of $7.1 billion for the same period in 2008. Weighted average mill selling prices for the nine months ended September 30, 2009 decreased 26% or $233 per ton compared to the same period in 2008 while finished steel shipments decreased 43% to 4.0 million tons for the nine months ended September 30, 2009 compared to 7.0 million tons for the same period in 2008.

For the three months ended September 30, 2009, metal spread, the difference between mill selling prices and scrap raw material costs, was $405 per ton, a decrease of $257 per ton from the same period in 2008. In comparison to the three months ended June 30, 2009, metal spreads decreased by $35 per ton due primarily to an increase in scrap raw material costs. Scrap raw material cost used in production for the three months ended September 30, 2009 was $213 per ton, a decrease of $180 per ton compared to the three months ended September 30, 2008. For the nine months ended September 30, 2009, metal spread was $452 per ton and decreased $78 per ton in comparison to the same period in the prior year.

EBITDA was $163.0 million for the three months ended September 30, 2009, compared to EBITDA of $581.4 million for the three months ended September 30, 2008. Despite the reduction in metal spread outlined above, EBITDA improved 152% from the $64.8 million for the three months ended June 30, 2009. For the nine months ended September 30, 2009, EBITDA was $276.4 million compared to EBITDA of $1.5 billion for the nine months ended September 30, 2008.

During the three and nine months ended September 30, 2009, the Company incurred a foreign exchange loss of $18.8 million and $30.5 million, respectively, as the Canadian dollar strengthened approximately 7% and 12% in comparison to the US dollar. This charge arose from the revaluation of US dollar investments held by the Company's Canadian entities.

During the second quarter of 2009, as a result of the significant downturn in the economy and declining demand for its products, the Company announced its plans to stop production at certain facilities. The Company stopped production at its Perth Amboy, New Jersey and Sand Springs, Oklahoma facilities during the third quarter of 2009. The Company recorded a $78.5 million and $115.0 million pre-tax charge for the three and nine months ended September 30, 2009, respectively, related to these actions.

On August 31, 2009, the Company completed the previously announced redemption of its $405 million 10 3/8% Senior Notes due in 2011 (the "Notes") at a redemption price in the amount of $412.3 million representing 101.792% of the outstanding principal amount (the "Redemption Price"). The Redemption Price was paid entirely with cash and the Notes were paid in full and are no longer outstanding. For the three and nine months ended September 30, 2009, the Company recorded a charge of $11.9 million related to this redemption.

At September 30, 2009, the Company had $821.1 million of cash and short-term investments, an increase of $132.7 million from the levels at December 31, 2008. Excluding the above noted redemption of Notes, the Company has generated $545.0 million in cash and short- term investments in 2009. In addition, the Company had approximately $570.3 million of availability under secured credit facilities which resulted in a total liquidity position of approximately $1.4 billion at September 30, 2009.

CEO Comments

Mario Longhi, President and CEO of Gerdau Ameristeel, commented:

"We have continued to make progress in a number of areas during the past quarter which has resulted in the third successive quarterly growth in EBITDA. This is a testament of our ability to quickly respond to market conditions and has resulted in the generation of $276.4 million of EBITDA for the nine months ended September 30, 2009. Destocking of inventory by our customers seems to have been completed and resulted in a 12% quarter over quarter increase in our shipment levels. To keep pace, the capacity utilization levels of our mills improved as production increased approximately 24% in comparison to the second quarter and manufacturing costs continued their downward trend as our employees continue to seek more efficient ways of producing steel.

We have substantially completed the activities related to the previously announced actions at our Sand Springs and Perth Amboy locations. As a result of leveraging our extensive network of steel producing facilities, we have been able to meet all of our customers' needs during this process. Our ability to continue providing superior service to our customers has been critical in the growth of our order rate. This focus on developing long-term service relationships is also being applied to our export customers as we expect this market will continue to provide opportunities for us in the future.

We expect normal seasonal market softness during the fourth quarter of 2009 and production will be adjusted to meet demand. However, we are confident that the actions we have taken are sustainable and will provide for attractive returns for our shareholders as conditions improve."

IFRS Conversion

In 2008, the Canadian Accounting Standards Board confirmed that Canadian publicly accountable enterprises will be required to adopt International Financial Reporting Standards ("IFRS") for interim and annual financial statements related to fiscal years beginning on or after January 1, 2011. The Canadian securities regulatory authorities have granted approval for the Company to early adopt IFRS for its financial statements for periods beginning on or after January 1, 2009. The Company had previously announced that it would report under IFRS for the first time during 2009, however, the Company is currently contemplating deferring the first time adoption of IFRS until 2010. The Company has substantially completed the process to transition from US GAAP to IFRS and has met the objectives of its comprehensive IFRS conversion plan.

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, November 5, 2009, at 1:30 pm EST. The call will be hosted by Mario Longhi, President and CEO, and Barbara Smith, VP and CFO, and can be accessed via 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 mini-mills, scrap recycling facilities and 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 Nine Months Ended

September 30, September 30,

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

2009 2008 2009 2008

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

NET SALES $1,146,134 $2,514,412 $3,219,797 $7,091,884

OPERATING EXPENSES

Cost of sales

(exclusive of

depreciation and

amortization) 932,822 1,878,579 2,770,156 5,459,398

Selling and

administrative 53,705 57,977 172,549 187,382

Depreciation 52,557 55,073 157,650 159,577

Amortization of

intangibles 16,476 26,256 49,574 76,676

Facility closure costs 78,488 - 115,033 -

Other operating expense

(income), net (1,954) (2,164) 2,471 (3,054)

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

1,132,094 2,015,721 3,267,433 5,879,979

INCOME (LOSS) FROM

OPERATIONS 14,040 498,691 (47,636) 1,211,905

INCOME (LOSS) FROM 50%

OWNED JOINT VENTURES 3,652 24,060 (11,848) 84,167

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

INCOME (LOSS) BEFORE OTHER

EXPENSES AND INCOME TAXES 17,692 522,751 (59,484) 1,296,072

OTHER EXPENSES

Interest expense 31,010 38,024 105,741 125,427

Interest income (1,147) (2,856) (4,310) (12,157)

Amortization of deferred

financing costs 3,384 2,779 9,191 8,161

Loss on extinquishment

of debt 11,877 - 11,877 -

Foreign exchange loss

(gain), net 18,788 (4,127) 30,543 (8,456)

Writedown of investments - 7,030 - 46,701

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

63,912 40,850 153,042 159,676

(LOSS) INCOME BEFORE

INCOME TAXES (46,220) 481,901 (212,526) 1,136,396

INCOME TAX (BENEFIT)

EXPENSE (20,968) 163,318 (95,847) 384,760

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

NET (LOSS) INCOME (25,252) 318,583 (116,679) 751,636

Less: Net income (loss)

attributable to

non-controlling interest 114 1,685 (1,061) 9,623

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

NET (LOSS) INCOME

ATTRIBUTABLE TO GERDAU

AMERISTEEL &

SUBSIDIARIES $ (25,366) $ 316,898 $ (115,618) $ 742,013

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

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

EARNINGS PER SHARE

ATTRIBUTABLE TO GERDAU

AMERISTEEL & SUBSIDIARIES

(Loss) earnings per

common share - basic $ (0.06) $ 0.73 $ (0.27) $ 1.72

(Loss) earnings per

common share - diluted $ (0.06) $ 0.73 $ (0.27) $ 1.71

GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(US$ in thousands, except earnings per share data)

(Unaudited)

September December

30, 2009 31, 2008

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

ASSETS

Current Assets

Cash and cash equivalents $ 684,557 $ 482,535

Restricted cash 2,570 -

Short-term investments 136,527 205,817

Accounts receivable, net 551,824 677,569

Inventories 893,391 1,267,768

Deferred tax assets 30,231 31,414

Costs and estimated earnings in excess of

billings on uncompleted contracts 10,144 14,771

Income taxes receivable 50,827 28,455

Other current assets 25,363 22,936

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

Total Current Assets 2,385,434 2,731,265

Investments in 50% Owned Joint Ventures 151,123 161,901

Long-term Investments 32,414 33,189

Property, Plant and Equipment, net 1,660,405 1,808,478

Goodwill 1,961,289 1,952,011

Intangibles 466,162 515,736

Deferred Financing Costs 35,430 35,170

Deferred Tax Assets 18,221 -

Other Assets 27,735 32,305

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

TOTAL ASSETS $6,738,213 $7,270,055

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

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

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Accounts payable and accrued liabilities $ 271,959 $ 182,697

Accrued salaries, wages and employee benefits 103,764 148,244

Accrued interest 3,694 54,480

Income taxes payable 570 2,983

Accrued sales, use and property taxes 16,724 13,902

Current portion of long-term environmental

reserve 6,463 7,599

Billings in excess of costs and estimated

earnings on uncompleted contracts 26,446 45,687

Other current liabilities 22,117 20,932

Current portion of long-term borrowings 3,191 1,893

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

Total Current Liabilities 454,928 478,417

Long-term Borrowings, Less Current Portion 2,657,619 3,067,994

Accrued Benefit Obligations 318,176 339,055

Long-term Environmental Reserve,

Less Current Portion 11,957 11,151

Other Liabilities 87,818 116,092

Deferred Tax Liabilities 298,132 323,854

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

TOTAL LIABILITIES 3,828,630 4,336,563

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

Contingencies, Commitments and Guarantees

Shareholders' Equity

Capital stock 2,553,648 2,552,323

Retained earnings 398,923 523,187

Accumulated other comprehensive (loss) income (74,382) (178,636)

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

Total Gerdau Ameristeel & Subsidiaries

Shareholders' equity 2,878,189 2,896,874

Non-controlling interest 31,394 36,618

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

TOTAL SHAREHOLDERS' EQUITY 2,909,583 2,933,492

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

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $6,738,213 $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 Nine Months Ended

September 30, September 30,

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

2009 2008 2009 2008

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

OPERATING ACTIVITIES

Net (loss) income $ (25,252) $ 318,583 $ (116,679) $ 751,636

Adjustment to reconcile

net (loss) income to net

cash provided by

operating activities:

Depreciation 52,557 55,073 157,650 159,577

Amortization of

intangibles 16,476 26,256 49,574 76,676

Amortization of deferred

financing costs 3,384 2,779 9,191 8,161

Deferred income taxes 1,315 (3,105) (7,138) (19,073)

Loss on disposition of

property, plant and

equipment 308 307 1,775 38

(Income) loss from 50%

owned joint ventures (3,652) (24,060) 11,848 (84,167)

Distributions from 50%

owned joint ventures 1,423 1,425 1,828 41,829

Compensation cost

(benefit) from share-

based awards 323 (9,822) 4,292 5,977

Excess tax benefits from

share-based payment

arrangements (17) (38) (129) (1,171)

Realized loss on

writedown of investments - 7,030 - 46,701

Facility closure costs 78,488 115 115,033 1,105

Loss on extinguishment

of debt 11,877 - 11,877 -

Writedown of inventory - - 33,044 2,937

Changes in operating

assets and liabilities,

net of acquisitions:

Accounts receivable (13,378) 38,393 134,065 (319,298)

Inventories (32,549) (248,762) 350,627 (523,657)

Other assets 5,817 397 7,685 (2,688)

Liabilities 693 (56,615) (149,531) 126,361

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

NET CASH PROVIDED BY

OPERATING ACTIVITIES 97,813 107,956 615,012 270,944

INVESTING ACTIVITIES

Purchases of property,

plant and equipment (11,894) (47,339) (70,994) (113,049)

Proceeds from

disposition of property,

plant and equipment 114 266 1,527 1,880

Acquisitions - (14,157) - (217,657)

Change in restricted cash (2,570) - (2,570) -

Purchases of investments (129,332) - (617,189) -

Proceeds from sales

of investments 258,971 - 695,150 700

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

NET CASH PROVIDED BY (USED

IN) INVESTING ACTIVITIES 115,289 (61,230) 5,924 (328,126)

FINANCING ACTIVITIES

Proceeds from issuance

of debt - - - 499

Payments on term

borrowings (413,825) (29) (417,472) (4,288)

Payments of deferred

financing costs - (1,578) (13,231) (1,686)

Cash dividends - (8,646) (8,646) (133,956)

Distributions to

subsidiary's

noncontrolling interest (570) - (4,163) (3,065)

Proceeds from exercise

of employee stock

options 31 20 212 1,144

Excess tax benefits from

share-based payment

arrangements 17 38 129 1,171

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

NET CASH USED IN

FINANCING ACTIVITIES (414,347) (10,195) (443,171) (140,181)

Effect of exchange rate

changes on cash and

cash equivalents 12,212 (5,070) 24,257 (6,798)

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

(DECREASE) INCREASE IN

CASH AND CASH EQUIVALENTS (189,033) 31,461 202,022 (204,161)

CASH AND CASH EQUIVALENTS

AT BEGINNING OF PERIOD 873,590 311,740 482,535 547,362

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

CASH AND CASH EQUIVALENTS

AT END OF PERIOD $ 684,557 $ 343,201 $ 684,557 $ 343,201

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

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

SUPPLEMENTAL INFORMATION

Cash (refunds) payments

for income taxes $ (668) $ 136,851 $ (19,977) $ 331,896

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

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

Cash payments for

interest $ 75,346 $ 73,963 $ 156,923 $ 152,076

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

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

Non-GAAP Financial Measures

Non-GAAP Adjusted Net Income (Loss) and earnings (loss) per share, which excludes the impact of facility closure costs, loss on extinguishment of debt 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, loss on extinguishment of debt 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:

For the Three Months For the Three Months

Ended - Unaudited Ended - Unaudited

September 30, Diluted September 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 $ (25,366) $ (0.06) $ 316,898 $ 0.73

Adjustment for facility

closure costs 78,488 0.18 - -

Adjustment for income

tax on facility

closure costs (27,019) (0.06) - -

Adjustment for loss on

extinguishment of debt 11,877 0.03 - -

Adjustment for income

tax on loss on

extinguishment of debt (4,528) (0.01) - -

Adjustment for writedown

of investments - - 7,030 0.02

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

Non-GAAP Adjusted Net

(Loss) Income and

earnings (loss)

per share $ 33,452 $ 0.08 $ 323,928 $ 0.75

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

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

For the Nine Months For the Nine Months

Ended - Unaudited Ended - Unaudited

September 30, Diluted September 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 $ (115,618) $ (0.27) $ 742,013 $ 1.71

Adjustment for facility

closure costs 115,033 0.26 - -

Adjustment for income

tax on facility

closure costs (36,723) (0.08) - -

Adjustment for loss on

extinguishment of debt 11,877 0.03 - -

Adjustment for income

tax on loss on

extinguishment of debt (4,528) (0.01) - -

Adjustment for writedown

of investments - - 46,701 0.11

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

Non-GAAP Adjusted Net

(Loss) Income and

(loss) earnings per

share $ (29,959) $ (0.07) $ 788,714 $ 1.82

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

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

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, loss on extinguishment of debt 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 (loss) income is shown below:

For the Three Months

Ended - Unaudited

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

September September

30, 2009 30, 2008

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

($000s)

Net (loss) income $ (25,252) $ 318,583

Income tax (benefit) expense (20,968) 163,318

Interest and other expense on debt 31,010 38,024

Interest income (1,147) (2,856)

Depreciation 52,557 55,073

Amortization of intangibles 16,476 26,256

Facility closure costs 78,488 -

Amortization of deferred financing costs 3,384 2,779

Loss on extinguishment of debt 11,877 -

(Income) from 50% owned joint ventures (3,652) (24,060)

Cash distribution from 50% owned joint ventures 1,423 1,425

Foreign exchange (gain) loss, net 18,788 (4,127)

Writedown of investments - 7,030

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

EBITDA $ 162,984 $ 581,445

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

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

For the Nine Months

Ended - Unaudited

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

September September

30, 2009 30, 2008

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

($000s)

Net (loss) income $ (116,679) $ 751,636

Income tax (benefit) expense (95,847) 384,760

Interest and other expense on debt 105,741 125,427

Interest income (4,310) (12,157)

Depreciation 157,650 159,577

Amortization of intangibles 49,574 76,676

Facility closure costs 115,033 -

Amortization of deferred financing costs 9,191 8,161

Loss on extinguishment of debt 11,877 -

Loss (income) from 50% owned joint ventures 11,848 (84,167)

Cash distribution from 50% owned joint ventures 1,828 41,829

Foreign exchange (gain) loss, net 30,543 (8,456)

Writedown of investments - 46,701

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

EBITDA $ 276,449 $1,489,987

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

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

SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION - UNAUDITED

THE INFORMATION IN THIS TABLE EXCLUDES 50% OWNED JOINT VENTURES

For the Three Months Ended

September 30, 2009 September 30, 2008

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

Tons Tons

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

Production

Melt Shops 1,646,180 2,395,926

Rolling Mills 1,528,939 2,268,206

Tons % Tons %

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

Finished Steel Shipments

Rebar 269,739 18% 355,733 17%

Merchant/Special

Sections/Structurals 799,028 53% 1,201,069 57%

Rod 141,850 10% 145,458 7%

Fabricated Steel 288,095 19% 395,674 19%

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

Total Shipments 1,498,712 100% 2,097,934 100%

$/Ton $/Ton

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

Selling Prices

Mill external

shipments $ 618 $ 1,055

Fabricated steel

shipments 888 1,254

Scrap Charged 213 393

Metal Spread (Selling

price less scrap)

Mill external shipments 405 662

Fabricated steel shipments 675 861

Mill manufacturing cost 275 350

SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION - UNAUDITED

THE INFORMATION IN THIS TABLE EXCLUDES 50% OWNED JOINT VENTURES

For the Nine Months Ended

September 30, 2009 September 30, 2008

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

Tons Tons

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

Production

Melt Shops 4,138,141 7,327,188

Rolling Mills 3,950,608 6,977,192

Tons % Tons %

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

Finished Steel Shipments

Rebar 728,408 18% 1,350,674 19%

Merchant/Special

Sections/Structurals 2,053,463 51% 3,976,194 57%

Rod 382,518 10% 538,185 8%

Fabricated Steel 860,562 21% 1,111,570 16%

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

Total Shipments 4,024,951 100% 6,976,623 100%

$/Ton $/Ton

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

Selling Prices

Mill external

shipments $ 648 $ 881

Fabricated steel

shipments 971 1,114

Scrap Charged 196 351

Metal Spread (Selling

price less scrap)

Mill external shipments 452 530

Fabricated steel

shipments 775 763

Mill manufacturing cost 311 329

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