Metals USA, Inc. announced net income of $31.8 million on net sales of $412.6 million for the third quarter and net income of $84.0 million on net sales of over $1.1 billion for the nine months ended September 30, 2004.

Third Quarter Results—Net income of $31.8 million ($1.53 per share) compares to $2.8 million ($0.14 per share) for the third quarter of 2003. Net sales, $412.6 million, compare to sales of $245.1 million reported for the third quarter of 2003. Operating income was $52.6 million, compared to operating income of $5.9 million reported in the third quarter of 2003.

The primary driving force behind the record sales achieved during the third quarter this year was an increase in average sales prices of 61% for the combined results of the Flat Rolled and the Plates and Shapes Divisions, when compared to the same period last year.

Nine Month Results—Net income of $84.0 million ($4.06 per share) compared to $4.9 million ($0.24 per share) for the nine months of 2003. Sales surpassed $1.1 billion, compared to sales of $713.7 million reported for the nine months ended September 30, 2003.

Comments—C. Lourenco Goncalves, President and CEO stated: "As in previous quarters, Metals USA was able to produce substantial profits during the quarter by means of good inventory management, as well as good buying and selling practices."

Mr. Goncalves continued: "Despite the usual negative impact of a reduced number of shipping days in November and December, we expect the fourth quarter to be another good one for Metals USA. Additionally, fourth quarter results should also be positively affected by a stronger-than-usual order book for Building Products in the Southeast, due to the aftermath of the severe hurricane season this year."

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.