Metals USA, Inc. announced net income of $33.7 million on net sales of $383.6 million and net income of $52.2 million on net sales of $702.8 million for the three and six months, respectively, ended June 30, 2004.

Second Quarter Results—Net income of $33.7 million ($1.63 per share) compares to $2.3 million ($0.11 per share) for the second quarter of 2003 and net income of $18.5 million ($0.91 per share) reported in the first quarter of 2004. The primary driving force behind the record numbers achieved during the second quarter this year were a 39.7% increase in average sales prices, coupled with a 21.4% combined increase in shipped tonnage by the Flat Rolled and Plates and Shapes Divisions when compared to the same period last year.

Net sales, $383.6 million, compare to sales of $242.3 million reported for the second quarter of 2003, and sales of $319.2 million reported in the first quarter of 2004. Operating income of $56.5 million compares to operating income of $5.0 million reported in the second quarter of 2003, and better than the operating income of $31.7 million reported in the first quarter of 2004.

Six Month Results—Net income of $52.2 million ($2.52 per share) compares to $2.1 million ($0.10 per share) for the first six months of 2003. Sales, $702.8 million, compare to sales of $468.6 million reported for the first six months of 2003.

Comments—C. Lourenco Goncalves, President and CEO stated, "We are pleased to announce Metals USA's record quarterly results. I want to express my sincere appreciation to each employee of our company as the record results are truly a reflection of their commitment to the improvement of our relationships with both suppliers and customers.” Mr. Goncalves continued: "It is clear that our business has changed. As far as Metals USA is concerned, we are now a world-class company prepared to successfully compete and make profits. At this point, we are confident that we will accomplish strong results in the second half of the 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.