<PAGE>
Exhibit 99.1
[LOGO] LONE STAR NEWS RELEASE
TECHNOLOGIES, INC.
CONTACT: CHARLES J. KESZLER
15660 N. DALLAS PARKWAY, SUITE 500 (972) 770-6495
DALLAS, TEXAS 75248 Fax: (972) 770-6471
SECOND QUARTER 2000
Dallas, TX, July 17, 2000 . . . Lone Star Technologies, Inc. (Lone Star),
NYSE: LSS, reported second quarter 2000 net income of $8.8 million, or $.36
per diluted share, which was an increase of 24% from the first quarter 2000
net income of $7.1 million, or $.29 per diluted share, and compared to a net
loss of $4.8 million, or $.21 per diluted share, in the quarter ended June 30,
1999. Net income for the first six months of 2000 was $15.9 million, or $0.65
per diluted share, compared to a net loss of $11.4 million, or $0.51 per
diluted share in the same 1999 period.
Second quarter 2000 revenues of $153.5 million were 99% higher than the same
quarter in 1999 and flat with the first quarter of 2000. Oilfield, specialty
tubing and flat rolled steel revenues were unchanged compared to the quarter
ended March 31, 2000 due to reduced shipment volumes combined with higher
realized prices in each segment.
Shipment volumes were 8% lower than the 2000 first quarter due to acceleration
of three major maintenance outages from the second half of 2000 into the
quarter ended June 30, 2000 at Lone Star Steel Company (Steel). Steel elected
to accomplish major maintenance outages on its rolling mill and two pipe mills
during the quarter, which are usually conducted throughout the year, to avoid
disruption during anticipated higher activity levels in the second half of
2000.
Oilfield, specialty tubing and flat rolled steel and other tubular product
prices were up 40%, 17% and 23%, respectively, from the same period in 1999,
and rose 10%, 10% and 1%, respectively, from the first quarter of 2000.
Realized price increases in oilfield products reflect previously announced
price increases and a favorable product mix of alloy grade premium tubulars
used in drilling for natural gas and offshore applications. Higher selling
prices and Bellville Tube Corporation's (Bellville) strong performance in
their first quarter with Lone Star contributed to gross margins of 14.5% in
the second quarter of 2000 compared to 11.7% in the 2000 first quarter.
On July 11, 2000, Lone Star announced that it filed a registration statement
to sell 3,750,000 shares of common stock including 750,000 shares offered by a
selling shareholder. Lone Star's net proceeds will be used to repay a
substantial portion of Lone Star's indebtedness relating to Lone Star's recent
acquisitions of Fintube Technologies, Inc. and Bellville. The stock sale will
be accretive to earnings per share.
Rhys J. Best, Chairman, President and Chief Executive Officer, stated, "As of
July 14, 2000, 77% of the 928 active rigs were drilling for natural gas
benefiting Lone Star with its wide range of premium oil country tubular goods.
Our election to take three major maintenance outages during the second quarter
leaves us well positioned to serve our customers' increased exploration and
production needs in the second half of this year. We will be expanding our
capacity for heat recovery steam generation tubulars during the third quarter
with a second facility in Mexico to meet growing demand for new electrical
power generating plants in North America."
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 Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---------------------------------------------
<S> <C> <C> <C> <C>
Net revenues $ 153.5 77.2 $ 307.4 140.9
Cost of goods sold (131.5) (77.7) (267.5) (143.6)
--------------------------------------------
Gross profit (loss) 22.0 (0.5) 39.9 (2.7)
Selling, general and administrative expenses (9.3) (3.6) (17.4) (7.4)
--------------------------------------------
Operating income (loss) 12.7 (4.1) 22.5 (10.1)
Interest income 0.4 0.4 0.9 0.8
Interest expense (3.9) (1.0) (6.9) (1.9)
Other income (expense) - (0.1) 0.2 (0.2)
--------------------------------------------
Income (loss) from continuing operations before income tax 9.2 (4.8) 16.7 (11.4)
Income tax (0.4) - (0.8) -
--------------------------------------------
NET INCOME (LOSS) $ 8.8 (4.8) $ 15.9 (11.4)
============================================================================================================
PER COMMON SHARE - BASIC:
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 0.37 (0.21) $ 0.68 (0.51)
============================================================================================================
PER COMMON SHARE - DILUTED:
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 0.36 (0.21) $ 0.65 (0.51)
============================================================================================================
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 23.5 22.5 23.5 22.5
Diluted 24.4 22.5 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 SIX MONTHS ENDED
JUNE JUNE
2000 % 1999 % 2000 % 1999 %
----- --- ----- --- ----- --- ----- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Oilfield products 81.4 53 37.2 48 162.9 53 67.2 48
Specialty tubing products 56.6 37 29.7 39 113.3 37 56.4 40
Flat rolled steel and other products 15.5 10 10.3 13 31.2 10 17.3 12
----- --- ----- --- ----- --- ----- ---
Total net revenues 153.5 100 77.2 100 307.4 100 140.9 100
----- --- ----- --- ----- --- ----- ---
</TABLE>
Shipments of products by segment are as follows:
<TABLE>
<CAPTION>
(in tons) (in tons)
FOR THE QUARTER ENDED FOR THE SIX MONTHS ENDED
JUNE JUNE
2000 % 1999 % 2000 % 1999 %
----- --- ----- --- ----- --- ----- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Oilfield products 114,300 57 73,300 54 239,700 57 129,200 54
Specialty tubing products 45,800 23 28,200 21 96,100 23 52,700 22
Flat rolled steel and other products 41,300 20 33,800 25 83,500 20 57,100 24
------- --- ------- --- ------- --- ------- ---
Total net revenues 201,400 100 135,300 100 419,300 100 239,000 100
------- --- ------- --- ------- --- ------- ---
</TABLE>
