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EMJ Reports 3rd Quarter Results

Jan. 30, 2004 — The Earle M. Jorgensen Co. reported net income of $1.2 million on revenues of $248.8 million for the company's third fiscal quarter ended Jan. 1, 2004.

Third Quarter Results—Net income was $1.2 million for the third quarters of both fiscal 2004 and fiscal 2003. Revenues increased 11.3% to $248.8 million and operating income increased 6.5% to $14.7 million for the third quarter of fiscal 2004, when compared to $223.6 million and $13.8 million, respectively, for the same period in fiscal 2003.

Nine-Month Results—Net income was $5.3 million compared to a loss of $5.6 million for the same period in fiscal 2003. Fiscal 2004 results included a gain of $1.1 million from the sale of surplus property and $4.4 million of pre-tax income for redemption of life insurance policies for the first nine months of fiscal 2004. Revenues increased 6.6% to $718.3 million when compared to $673.9 million for the first nine months of fiscal 2003. Operating income increased 49.7% to $44.9 million, as compared to $30.0 million for fiscal 2003. Fiscal 2003 included a loss of $12.3 million resulting from early termination of debt.

Comments—Maurice S. Nelson, Jr., EMJ's President and Chief Executive Officer stated: "We continue to be pleased with our results for the first nine months of Fiscal 2004 which were achieved in a challenging economic environment. We are seeing strong signs of recovery in the manufacturing sectors that we serve and we were particularly pleased with sales activity in December.

"Our gross and operating margins have remained consistent throughout fiscal 2004, reflecting our ongoing strategy of successfully marketing our core products and services while maintaining disciplined cost controls. We believe this strategy, together with maintaining balanced inventories, has and will continue to allow us to effectively compete in the marketplace.

"The company opened its newest satellite facility in Orlando, Florida during the quarter to expand its service to customers in the Southeast."

The company has completed relocation of its corporate office to Lynwood.

EMJ is one of the largest independent distributors of metal products in North America with 36 service and processing centers. EMJ inventories more than 25,000 different bar, tubing, plate, and various other metal products, specializing in cold finished carbon and alloy bars, mechanical tubing, stainless bars and shapes, aluminum bars, shapes and tubes, and hot-rolled carbon and alloy bars.

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