<PAGE>
Exhibit 99.1
[GRAPHIC OMITTED] LONE STAR NEWS RELEASE
TECHNOLOGIES, INC.
CONTACT: CHARLES J. KESZLER
(972) 770-6495
Fax: (972) 770-6471
LONE STAR TECHNOLOGIES, INC. REPORTS THIRD QUARTER 2000 EARNINGS
Dallas, TX, October 16, 2000 . . . Lone Star Technologies, Inc. (Lone Star),
NYSE: LSS, reported third quarter 2000 net income of $10.4 million, or $.43
per diluted share, which was an increase of 19% from the second quarter 2000
net income of $8.8 million, or $.36 per diluted share, and compared to net
income of $2.0 million, or $.09 per diluted share, which included $1.8
million, or $.08 per diluted share, from the settlement of lawsuits against
graphite electrode manufacturers in the quarter ended September 30, 1999. Net
income for the nine months ended September 30, 2000 was $26.3 million, or
$1.08 per diluted share, compared to a net loss of $9.4 million, or $0.42 per
diluted share in the same 1999 period.
Third quarter 2000 revenues of $167.5 million increased 68% from the same
quarter in 1999. Oilfield and flat rolled steel revenues were up 17% and 16%,
respectively, compared to the quarter ended June 30, 2000 due to higher
shipment volumes combined with higher realized prices, while specialty tubing
revenues were down 4% on reduced shipment volumes, primarily related to
automotive applications, partially offset by slightly higher prices.
Total shipment volumes of 221,500 tons were 10% higher than the 2000 second
quarter. Third quarter 2000 shipments of oilfield products were up 15% from
the quarter ended June 30, 2000 as the average rig count increased 16% from
the second quarter of 2000 to 982 during the third quarter of 2000. Shipments
of oilfield casing and production tubing in the third quarter of 2000
consisted of 57% alloy grade, high strength tubulars used in deep well
applications. Shipments of flat rolled steel and other tubulars were 13%
higher than the second quarter of 2000, while shipments of specialty tubing
products were down 5%.
Several records were set during the third quarter using Lone Star's expandable
casing including the longest single expandable casing installation. To date
there have been eleven successful expandable tubular installations.
Lone Star further extended its wide product offering of oilfield tubulars,
particularly in line pipe, during the third quarter through an alliance to
market and distribute steel tubular products from U.S. Steel's McKeesport
facility. Lone Star also expanded its capacity for specialty tubing products
used in power generation plants with the installation of new production
equipment in its Oklahoma finned tubing plants, the commencement of operations
at a new Monterrey, Mexico finning facility and the initiation of fabrication
of large heat recovery steam generators (HRSG) at its new facility in Tulsa,
Oklahoma.
Rhys J. Best, Chairman, President and Chief Executive Officer, stated, "With
80% of the 1045 active rigs last Friday drilling for natural gas, Lone Star
will continue to broaden its wide product offering of high strength premium
tubular products needed by our customers. We are also continuing plans for
further expansion to enhance our global leadership position in HRSG tubulars
to meet growing power generation demand."
Lone Star Technologies, Inc. is a holding company whose principal operating
subsidiaries manufacture and market oilfield casing, tubing, and line pipe,
specialty tubing products including finned tubes used in a variety of heat
recovery applications, and flat rolled steel and other tubular products and
services.
This release contains forward looking statements based on assumptions
that are subject to a wide range of business risks. There is no assurance
that the estimates and expectations in this release will be realized.
Important factors that could cause actual results to differ materially
from the forward looking statements are described in the periodic filings
of Lone Star Technologies, Inc. with the Securities and Exchange
Commission, including its Annual Report on Form 10-KA for the year ended
December 31, 1999.
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LONE STAR TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
For the For the
Quarter Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
-----------------------------------------------
<S> <C> <C> <C> <C>
Net revenues $ 167.5 $ 99.5 $ 474.9 $ 240.4
Cost of goods sold (144.9) (92.6) (412.4) (236.2)
-----------------------------------------------
Gross profit 22.6 6.9 62.5 4.2
Selling, general and administrative expenses (8.5) (3.9) (25.9) (11.3)
-----------------------------------------------
Operating income (loss) 14.1 3.0 36.6 (7.1)
Interest income 0.5 0.5 1.4 1.3
Interest expense (3.7) (1.4) (10.6) (3.3)
Other income (expense) 0.2 (0.1) 0.4 (0.3)
-----------------------------------------------
Income (loss) from continuing operations before income tax 11.1 2.0 27.8 (9.4)
Income tax (0.7) - (1.5) -
-----------------------------------------------
NET INCOME (LOSS) $ 10.4 $ 2.0 $ 26.3 $ (9.4)
==================================================================================================================
PER COMMON SHARE - BASIC:
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 0.44 $ 0.09 $ 1.12 $ (0.42)
==================================================================================================================
PER COMMON SHARE - DILUTED:
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 0.43 $ 0.09 $ 1.08 $ (0.42)
==================================================================================================================
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 23.6 22.6 23.5 22.5
Diluted 24.4 22.9 24.3 22.5
</TABLE>
Consolidated revenues reported in the statements of income are as follows:
<TABLE>
<CAPTION>
($ in millions) ($ in millions)
FOR THE QUARTER ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER SEPTEMBER
2000 % 1999 % 2000 % 1999 %
---- --- ---- --- ---- --- ---- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Oilfield products 94.9 57 51.3 52 257.8 54 118.5 49
Specialty tubing products 54.6 32 32.0 32 167.9 35 88.4 37
Flat rolled steel and other products 18.0 11 16.2 16 49.2 11 33.5 14
-------- ----- ------- ----- ------- ----- -------- -----
Total net revenues 167.5 100 99.5 100 474.9 100 240.4 100
======== ===== ======= ===== ======= ===== ======== =====
</TABLE>
Shipments of products by segment are as follows:
<TABLE>
<CAPTION>
(in tons) (in tons)
FOR THE QUARTER ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER SEPTEMBER
2000 % 1999 % 2000 % 1999 %
---- --- ---- --- ---- --- ---- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Oilfield products 131,300 59 94,700 53 371,000 58 223,900 54
Specialty tubing products 43,600 20 32,100 18 139,700 22 84,800 20
Flat rolled steel and other products 46,600 21 50,500 29 130,100 20 107,600 26
---------- ----- ---------- ----- --------- ----- ---------- -----
Total shipments 221,500 100 177,300 100 640,800 100 416,300 100
========== ===== ========== ===== ========= ===== ========== =====
</TABLE>
