Metals USA, Inc. announced net income of $17.3 million on net sales of $427.6 million for its first quarter ended March 31, 2005.

The $17.3 million net income ($0.83 per diluted share) compares to net income of $18.5 million ($0.91 per diluted share) for the first quarter of 2004.

Net sales, $427.6 million, compare with net sales of $319.2 million for the year-ago quarter. Metals USA says the primary driving force behind the record sales numbers was an increase in average realized sales prices (+52%), offset by a 10% decline in combined shipped tonnage by the Flat Rolled and Plates and Shapes Divisions when compared to the same period last year. As a consequence of the changes implemented last year and helped by strong demand in Florida, the Building Products Division delivered their best first quarter results ever.

C. Lourenco Goncalves, President and CEO of Metals USA commented: "We are pleased with our first quarter numbers. Revenue growth was driven by higher metal prices, while margins, as expected, were not as high as last year's first quarter. We have maintained our disciplined approach to sales, walking away from less profitable transactions and expanding our business with our customers toward more value-added service."

Mr. Goncalves continued: "Our first quarter results were good and are a clear demonstration that Metals USA can be profitable even when market conditions are not as favorable as last year. Although we have not seen any indications of metal price increases due to the recent increases in raw material costs to the mills as we had expected, underlying demand remains good, and we expect our second quarter to be another good one."

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