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Oregon Steel Net Rises

Shares sink.

Oregon Steel Mills

(OS)

, a manufacturer of various steel products, said its earnings for the third-quarter of 2006, more than doubled from the year-ago period.

The Portland, Ore.-based company earned $50.6 million, or $1.40 a share, in the quarter, compared with $20.2 million, or 57 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $45.3 million, or $1.37 a share.

Third-quarter revenue increased 43.2% from a year ago to $429.1 million as against analysts" expectations of $421.9 million. The increase in revenue was primarily due to increased shipments of plate and coil, rail and welded and seamless pipe products, partially offset by lower shipments of rod and bar products.

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The company is targeting revenues of about $1.5 billion for the full year 2006 as against analysts" expectation of $1.58 billion.

During the third-quarter, operating income also more than doubled from a year ago to $102.2 million and operating margin increased to 23.8% from 12% a year ago.

By segment, third-quarter revenue for Oregon steel division increased 60% to $ 271 million and revenue from Rocky Mountain steel mills division rose 22% to $158.1 million.

"Looking forward into 2007, we are optimistic about the future. We believe that our plate, rail and energy markets will continue to be strong and, with our large diameter pipe mills booked into 2008, we estimate that our shipments could exceed 2 million tons for the first time ever, resulting in another record annual performance for our Company," the company said.

The company's shares were trading down 90 cents, or 1.6%, to $57.10 Friday.

This story was created through a joint venture between TheStreet.com and IRIS.