In the first quarter, Steel Manufacturing Business benefited from increased sales volumes due to slightly higher demand and lower customer inventory levels as compared to the prior year first quarter.
Summary of Steel Manufacturing Business Results
| Item | Q1 '12 | Q1 '11 | Change |
| Revenues | 80 | 64 | 26% |
| Avg Net Sales Prices (USD/T) | 722 | 634 | 14% |
| Finished Goods Sales Volumes | 107 | 98 | 9% |
| Operating Income | 1 | -2 | NM |
In USD millions, except selling prices
Volume in '000 tonnes
Sales Volumes: Finished steel sales volumes of 107 thousand tons increased 9% from the prior year quarter.
Pricing: Average net sales prices for finished steel products increased 14% compared to the prior year quarter.
Margins: Higher sales prices and improved utilization resulted in positive operating income.
Steel Manufacturing Business: Outlook
The following summary of management's outlook for the Steel Manufacturing Business in the second quarter of fiscal 2012 is subject to uncertainty that may affect future results.
Sales Volumes: Sales volumes are expected to be slightly higher than the first quarter of fiscal 2012.
Pricing: Average net sales prices are expected to approximate first quarter of fiscal 2012.
Margins: Operating margins are expected to approximate break even.
