SOURCE: Alloy Steel International

Alloy Steel International

February 03, 2010 09:09 ET

Alloy Steel International Inc. Preliminary Profit Advice Quarter Ending 31/12/09

PERTH, AUSTRALIA--(Marketwire - February 3, 2010) - The Company (OTCBB: AYSI) is pleased to advise that the pre-tax operating profit for the trading quarter 1st October to 31 December 2009, is expected to be approximately USD 2.24million. This is an increase of USD 3,200,500 over the same quarter (loss USD 960,500) last year.

Gross Revenues for the period were USD 5,800,000 compared with USD 1,850,000 for the corresponding quarter last year; an increase of USD 3,950,000 or 214%.

The Company's chief executive Mr. Gene Kostecki said that this is an extremely good result for this particular quarter of the Company's fiscal year particularly when the December is always a short production month due to the Christmas vacation break when the plant shuts down for annual maintenance and implements equipment upgrade programs to minimize disruptions during peak production periods.

Alloy Steel International will lodge its 10Q Report with the SEC and to the media, giving complete detail of the quarter's operation prior to February 15th.

The Directors are extremely gratified about the prospects for the company in and beyond 2010 and in particularly Western Australia the Company's largest domestic market, where Alloy Steel is experiencing a boom in expansion programs for new mine construction and existing mining operations to meet increasing international demand for iron ore and other commodities with demand coming out of Chinese and Indian markets.

The with the recent release of the companies new premium thicker Arcoplate SuperAlloy product range, Alloy Steel is also seeing a significant increase in demand from international distributors and users compared with the last two years.

The Profit and Gross Revenue results are a record milestone for the Company and come on the back of the release of Super Alloy Arcoplate and the resurgence of activity in the mining industry both in Australia and worldwide and this is expected to grow for some considerable time into the future as China and India continue to further develop their own economies.

As Alloy's clients continue to expand their operations to meet the demands coming from such giant economies and utilise more of our Company's product, we would expect to continue to receive the majority of the wear material requirements for these new mine expansion projects and existing mine maintenance requirements.

This will allow Alloy to continue to show high gross margins that demonstrate the strength of this company, its product and its people.

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