According to the latest Metals Activity Report from US based Metals Service Center Institute, US and Canadian metals service centers rebounded in April from unseasonably low levels in March, with year over year shipment increases in nearly all metals categories.

Inventories of both metals remained at levels well below total stocks at the end of April 2007 and were down, as well, from inventories reported at the end of March 2008, with one important exception, the Metals Activity Report from the Metals Service Center Institute shows.

The one exception was inventories of steel products in the United States, which rose slightly, to 12.4 million tons or 2.6% above US steel stocks at the end of March. Metals customers appear to buy only when they need product and service centers have maintained inventories closely aligned with demand.

Shipments of steel products from US service centers rose 3.3% in April, to 4.65 million tons as compared with April 2007. For the year to date, shipments of 17.7 million tons were down 2.8% from volume during the first four months of 2007. Month end inventories of 12.4 million tons were 15.1% lower than April 2007 stockpiles and, at current shipping rates, represented a 2.7 month supply.

Steel product shipments from Canadian metals service centers totaled 328,400 tons, a 6.6% increase from shipments in April 2007. Steel shipments for the first four months of 2008 totaled 1.28 million tons, a decline of 0.7% from the same period a year ago. Steel inventories held by Canadian service centers at the end of April totaled almost 1.1 million tons, or 15.2% below year earlier levels and, at current shipping rates, equal to a 3.3 month supply.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico, and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers.

DALLAS, May 9 /PRNewswire-FirstCall/ — Keystone Consolidated Industries, Inc. (OTC Bulletin Board: KYCN - News), reported net income of $13.6 million, or $1.39 per diluted share, in the first quarter of 2008 as compared to $14.5 million, or $1.45 per diluted share, in the first quarter of 2007. The decrease in earnings was due primarily to a lower pension credit during the first quarter of 2008 of $19.0 million as compared to the $20.4 million pension credit recorded during the first quarter of 2007.
Because the amount of the Company’s net periodic defined benefit pension and other postretirement benefit (”OPEB”) expense or credits are unrelated to the ongoing operating activities of the Company, Keystone measures its overall operating performance using operating income before net pension and OPEB expense or credits. A reconciliation of operating income as reported to operating income adjusted for pension and OPEB credits is set forth in the following table.

Three months ended
March 31,
(In thousands)

2007 2008
Operating income as reported $24,291 $22,776
Defined benefit pension credit (20,378) (18,996)
OPEB credit (2,200) (2,198)
Operating income before pension and OPEB $1,713 $1,582

The Company’s sales volumes and per-ton selling prices for the first quarter of 2007 and 2008 were as follows:

Sales Volume Selling Prices
Three months Three months
ended ended
March 31, March 31,
2007 2008 2007 2008
(000 tons) (Per ton)
Fabricated wire products 34 30 $1,068 $1,180
Wire mesh 12 13 879 941
Industrial wire 23 17 733 846
Coiled rebar 6 3 526 624
Bar - 5 - 710
Wire rod 86 106 517 621
Billets (1) 1 132 255
All products 161 175 693 764

(1) Less than 1,000 tons.

Operating income before pension and OPEB for the first quarter of 2008 was slightly lower than the first quarter of 2007 primarily due to the net effects of the following factors:

— lower shipment volumes of fabricated wire products as a result of
customer resistance to Keystone’s price increases;
— lower shipment volumes of industrial wire due to exceptional shipment
volumes during the first quarter of 2007 as a result of competitor
production problems;
— increased costs for ferrous scrap;
— increased costs for electricity and natural gas;
— severance costs of $800,000 related to a reduction in force at
Keystone’s largest manufacturing facility during the first quarter
of 2008;
— higher shipment volumes of wire rod due to lower quantities of import
product available for sale and higher prices for import products as
well as the weak U.S. dollar;
— higher per-ton product selling prices primarily in reaction to the
increased costs for ferrous scrap.

The 2008 pension credit is lower than the pension credit for 2007 due to the component of the pension credit related to the expected return on plan assets; Keystone’s plan assets decreased $19.5 million during 2007.

As previously reported, on March 24, 2008, Keystone received $25 million and issued an additional 2.5 million shares of its common stock pursuant to a subscription rights offering that expired on March 17, 2008. Keystone used the offering proceeds to reduce indebtedness under its revolving credit facility, which in turn created additional availability under that facility that can be used for general corporate purposes, including scheduled debt payments, capital expenditures, potential acquisitions or the liquidity needs of Keystone’s current operations.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are not historical in nature are forward-looking and are not statements of fact. Forward-looking statements represent the Company’s beliefs and assumptions based on currently available information. In some cases you can identify these forward-looking statements by the use of words such as “believes,” “intends,” “may,” “should,” “could,” “anticipates,” “expected” or comparable terminology, or by discussions of strategies or trends. Although Keystone believes the expectations reflected in forward-looking statements are reasonable, it does not know if these expectations will be correct. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly impact expected results. Actual future results could differ materially from those predicted. While it is not possible to identify all factors, the Company continues to face many risks and uncertainties. Among the factors that could cause Keystone’s actual future results to differ materially from those described herein are the risks and uncertainties discussed from time to time in the Company’s filings with the Securities and Exchange Commission (”SEC”) including, but not limited to, the following:

— Future supply and demand for Keystone’s products (including
cyclicality thereof),
— Customer inventory levels,
— Changes in raw material and other operating costs (such as ferrous
scrap and energy),
— The possibility of labor disruptions,
— General global economic and political conditions,
— Competitive products (including low-priced imports) and substitute
products,
— Customer and competitor strategies,
— The impact of pricing and production decisions,
— Environmental matters (such as those requiring emission and discharge
standards for existing and new facilities),
— Government regulations and possible changes therein,
— Significant increases in the cost of providing medical coverage to
employees,
— The ultimate resolution of pending litigation,
— International trade policies of the United States and certain
foreign countries,
— Operating interruptions (including, but not limited to, labor
disputes, fires, explosions, unscheduled or unplanned downtime
and transportation interruptions),
— The Company’s ability to renew or refinance credit facilities,
— Any possible future litigation, and
— Other risks and uncertainties as discussed in the Company’s filings
with the SEC.

Should one or more of these risks materialize, if the consequences worsen, or if the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. Keystone disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

In an effort to provide investors with additional information regarding the Company’s results as determined by accounting principles generally accepted in the United States of America (”GAAP”), the Company has disclosed certain non-GAAP information, which the Company believes provides useful information to investors:

— The Company discloses operating income before pension and OPEB credits
or expense, which is used by the Company’s management to assess its
performance. The Company believes disclosure of operating income
before pension and OPEB credits or expense provides useful information
to investors because it allows investors to analyze the performance of
the Company’s operations in the same way the Company’s management
assesses performance.

Keystone Consolidated Industries, Inc. is headquartered in Dallas, Texas. The Company is a leading manufacturer of steel fabricated wire products, industrial wire, billets and wire rod. Keystone also manufactures wire mesh, coiled rebar and steel bar. The Company’s products are used in the agricultural, industrial, cold drawn, construction, transportation, original equipment manufacturer and retail consumer markets. Keystone’s common stock is traded on the OTC Bulletin Board (Symbol: KYCN).

KEYSTONE CONSOLIDATED INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)

Three months ended
March 31,
2007 2008
(unaudited)

Net sales $113,098 $134,139
Cost of goods sold (106,731) (127,013)

Gross margin 6,367 7,126

Other operating income (expense):
Selling expense (1,678) (1,871)
General and administrative expense (2,976) (3,673)
Defined benefit pension credit 20,378 18,996
Other postretirement benefit credit 2,200 2,198

Total other operating income 17,924 15,650

Operating income 24,291 22,776

Nonoperating income (expense):
Interest expense (1,197) (1,313)
Interest and other income, net 138 390

Total nonoperating expense (1,059) (923)

Income before income taxes 23,232 21,853

Provision for income taxes (8,768) (8,243)

Net income $14,464 $13,610

Basic and diluted income per share $1.45 $1.39

Basic and diluted weighted average
shares outstanding 10,000 9,794

——————————————————————————–
Source: Keystone Consolidated Industries, Inc.

SHANGHAI, China, May 9 /Xinhua-PRNewswire/ — China Precision Steel (Nasdaq: CPSL - News), a niche precision steel processing company principally engaged in producing and selling high precision cold-rolled steel products, today announced that it will conduct a conference call at 9:00 a.m. Eastern Time on Thursday, May 15, 2008 to discuss the third quarter fiscal 2008 results.

Joining Dr. Wo Hing Li, Chairman and Chief Executive Officer of China Precision Steel, will be Ms. Leada Li, Chief Financial Officer.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 888-482-0024. International callers should dial 617-801-9702. When prompted by the operator, mention Conference Passcode 863 969 80.

If you are unable to participate in the call at this time, a replay will be available for fourteen days starting on Thursday, May 15, 2008 at 11:00 a.m. Eastern Time. To access the replay, dial 888-286-8010 and enter the passcode 18376926. International callers should dial 617-801-6888 and enter the passcode 18376926.

This conference call will be broadcast live over the Internet and can be accessed by all interested parties by clicking on http://www.chinaprecisionsteelinc.com . Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a 90 day replay will be available shortly after the call by accessing the same link.

About China Precision Steel

China Precision Steel is a niche precision steel processing company principally engaged in the production and sale of high precision cold-rolled steel products and provides value added services such as heat treatment and cutting medium and high carbon hot-rolled steel strips. China Precision Steel produces high precision ultra-thin (3.0 mm to 0.03 mm) cold-rolled steel products primarily for automotive components, food packaging materials, saw blades and textile needle manufacturing companies in the People’s Republic of China. China Precision Steel’s operation is currently located in the People’s Republic of China. However, China Precision Steel intends to expand overseas into Japan, Taiwan, Korea, Thailand, the Philippines, the European Union and the United States in the future.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which the Company is engaged; cyclicality of steel consumption including overcapacity and decline in steel prices, limited availability of raw material and energy may constrain operating levels and reduce profit margins, environmental compliance and remediation could result in increased cost of capital as well as other relevant risks not included herein. The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.

TOKYO (MarketWatch) — Toyota Motor Corp.  and Nippon Steel Corp.  have reached a final agreement to increase the price of steel sheets for vehicles by some 30% per ton, sources familiar with the matter said Saturday, according to Kyodo News.
Kyodo reported that the price hike of more than Y25,000 will bring the steel product price over the Y100,000 level per ton for the first time ever, the sources said.
The price increase is retroactive to April shipments, according to the sources, Kyodo said.
With the decision by the nation’s largest automaker, other automakers, including Honda Motor Co. (HMC) and Nissan Motor Co. (NSANY), are expected to accept a similar price increase, according to Kyodo.
Other steelmakers, such as JFE Steel Corp., are also expected to follow suit to conclude similar agreements with automakers, Kyodo reported.
Major Japanese steelmakers expect a threefold spike in coal prices and a 65% jump in iron ore prices in fiscal 2008 that started April 1, Kyodo said.
They have demanded automakers to accept a steel sheet price increase of some Y30,000 per ton for the year, but their negotiations with automakers have proceeded with difficulty, according to Kyodo.