Alloy Steel International Reports 2010 Fiscal Year-End Results

PERTH, Australia, Jan. 28, 2011 /PRNewswire/ -- Alloy Steel International, Inc. (OTC Bulletin Board: AYSI) ("Alloy Steel" or "Company") a wear plate manufacturer based in Malaga, Perth, Western Australia, today reported audited results for fourth quarter and year ended September 30, 2010.

Financial Results

During the quarter ended September 30, 2010, total quarterly sales increased to $8.8 million as compared to $4.2 million in the fourth quarter of 2009.  These sales consist solely of the Company's Arcoplate products.  Income before tax for the fourth quarter of 2010 was $2.7 million or $0.16 per common share, compared with income before tax of $0.5 million or $0.03 per common share for the same period in 2009.

For the year ended September 30, 2010, total sales increased to $24.5 million as compared to $8.8 million for the same period in 2009.  Net income after tax for 2010 was $4.9 million or $0.28 per common share, compared with a net loss after tax of ($0.07) million or ($0.004) per common share for the same period in 2009.

Results of Operations

For the year ended September 30, 2010, sales have improved by 178 percent compared to sales for the year ended September 30, 2009.   This occurred due to an increase in demand for ArcoPlate facilitated by increased production.  It was previously announced in the fourth quarter 2009 that the second mill had commenced production, although problems were encountered.  During the commissioning process, it became evident that further enhancements were required to make the mill more efficient.   The increased productive capacity of the Company is reflected in the quarterly production and sales for the fourth quarter 2010 and beyond.

The Company has a unique product being manufactured by newly developed technology, invented by the current Chairman and CEO, Mr. Gene Kostecki and the team at Alloy Steel.

Mr. Kostecki stated, "The Company is very pleased with this significant result that has come at an important time in its development.  The Company has posted record quarterly and annual sales and a record net income after tax and is poised to continue growth.  We are further encouraged with the continued response by our customers to our range of wear plate products and our order book remains strong."

Excerpts of the audited financial statements are attached to this report.  These excerpts are a summary only and should be read in the context of the full audited financial statements which will become available upon the release of the Company's Annual Report.

-- FINANCIAL TABLES FOLLOW --

NOTES

FORWARD-LOOKING STATEMENTS

This Press Release contains various "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements.  Such risks and uncertainties include our projected sales and profitability, growth strategies, anticipated trends in our industry segment, our future financing plans, anticipated needs for working capital and those risks and uncertainties referenced under the headings entitled "Risk Factors" contained in our 2009 Annual Report on Form 10-K. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology.

Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors.  In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur.  The forward-looking statements contained in this Press Release speak only as of the date hereof and we expressly disclaim any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in our expectations of future events.

EXCHANGE RATE MOVEMENTS

It is noted that predominantly all operations of Alloy Steel International are conducted by the Australian subsidiary, and therefore, the majority of the amounts reported are initially recorded in Australian dollars by the subsidiary.  The value of the Australian dollar compared to the US dollar has been volatile over the reporting period, and therefore the exchange rate movement continues to have a reasonable impact upon the value reported by the Company.  

SOURCE Alloy Steel International, Inc.