Metals USA Inc. announced record net income of $20.5 million on net sales of $394.4 million for the fourth quarter, and net income of $104.5 million on net sales of $1.51 billion for the full year ended Dec. 31, 2004.

Fourth Quarter Results—Net income of $20.5 million ($0.99 per diluted share) compares to $2.6 million ($0.13 per diluted share) for the fourth quarter of 2003. Net sales of $394.4 million compare to $249.5 million reported for the same quarter in 2003. Operating income of $32.9 million compares to operating income of $4.0 million reported in the fourth quarter of 2003.

Full Year Results—Annual net income of $104.5 million ($5.05 per diluted share) compares to $7.5 million ($0.37 per diluted share) in 2003. Sales surpassed $1.5 billion, compared to sales of $963.2 million reported for 2003. Operating income was $173.7 million, compared to $16.4 million for 2003.

Comments—C. Lourenco Goncalves, President and CEO stated, "In many ways, 2004 has been a unique year for the metals business. Metal prices increased to all time highs during 2004, as tight supply concerns were the dominant issue." Mr. Goncalves continued, "The U.S. economy is healthy, and we expect the current level of metal consumption to continue. As far as pricing is concerned, recent announcements of increases in raw material prices for integrated mills in Asia and in Europe have the potential to push worldwide steel prices upward. However, it is difficult to say at this time just when and how much further domestic prices will be affected." Mr. Goncalves also stated, "Regardless of what ultimately happens to metal prices, we believe in the strength of our business, and are prepared to deliver good results."

Metals USA Inc. is a leading metals processor and distributor in North America, producing a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.