North American Galvanizing & Coatings, Inc. reported a net loss of $142,000 on sales of $8.58 million for the fourth quarter and net earnings of $403,000 on sales of $35.8 million for the year ended December 31, 2004.

Fourth Quarter Results—A seasonal-related slowing of business activity in the final quarter of 2004, combined with increased legal expenses, resulted in a fourth quarter net loss of $142,000 ($.03 per share), which compares to a net loss of $59,000 ($.01 per share) for 2003. Sales of $8,583,000 reflect a 4.1% increase compared to $8,246,000 for the comparable quarter of 2003.

Full Year Results—Net earnings of $403,000 ($.05 per share) compare to a net loss of $1,013,000 ($.15 per share) for 2003. Sales of $35,822,000 reflect a 7.9% increase over 2003 sales.

Comments—"North American Galvanizing benefited from a modest upturn in activity from key customers serving power distribution, communications, highway and recreational markets," said the Company's President and CEO, Ronald J. Evans. "Volume for 2004 did not reflect the improvement in the economy that we expected. Based on this limited improvement in demand for galvanizing, our earnings from continuing operations rose to $ 403,000 for 2004 compared to a loss of $182,000 for 2003." In 2003, the company took a charge to discontinued operations of $831,000 to write-off an abandoned plant.

New Development—The company announced on Thursday, February 24, that a tentative agreement had been reached to acquire the hot-dip galvanizing assets of Gregory Galvanizing located in Canton, Ohio. Commenting on the transaction, which is expected to be finalized before the end of this month, Mr. Evans said, "The Canton, Ohio, multi-kettle facility will expand North American Galvanizing's service area into the northeast region of the United States.

With annual sales of approximately $7,000,000, the purchase is expected to add significantly to North American Galvanizing's 2004 reported revenues of approximately $36,000,000."

North American Galvanizing is a leading provider of hot-dip galvanizing and coatings for corrosion protection of fabricated steel products. The company conducts its galvanizing and coating business through a network of plants located in Denver, Hurst (Dallas/Forth Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area.