North American Galvanizing & Coatings, Inc. announced net earnings of $106,000 on net sales of $9,333,000 for the second quarter of 2004.

Second Quarter Results—Net earnings of $106,000 ($.01 per share, fully diluted) compares to a net loss of $714,000 ($0.11 loss per share, fully diluted) for the second quarter of 2003. The 2003 second-quarter loss had included a $790,000 net loss related to closing of an abandoned galvanizing plant. Net sales this quarter, $9,333,000, represent an 11.1% increase compared to sales of $8,398,000 for the same quarter a year ago.

Six-Month Results—Net earnings of $316,000 ($.04 per share fully diluted) compare to a prior-year first-half loss of $1,044,000 ($.15 per share), which included an $831,000 net loss for discontinued operations. Sales increased 8.8% to $17,891,000 from sales of $16,438,000 for the same period of 2003.

Comments—The company's President and CEO, Ronald J. Evans, noted a continuation of the modest increase in construction-related demand for galvanizing the company experienced in the first quarter of 2004. Compared to 2003, increased earnings were primarily the result of improved gross profit from cost efficiencies and higher volume and lower interest expense, partially offset by additions to the reserve for collection of doubtful accounts. Mr. Evans expressed confidence that North American Galvanizing is positioned to take advantage of its streamlined cost structure as the economy improves, and emphasized that the company will continue to address improving operating efficiencies.

North American Galvanizing & Coatings, Inc. is a leading provider of hot dip galvanizing and coatings for corrosion protection of fabricated steel products through its North American Galvanizing Co. subsidiary. The company conducts its galvanizing and coatings business through a network of plants located in Denver, Hurst (Dallas/Fort Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area. Hot dip galvanizing provides metals corrosion protection for many product applications used in commercial, construction and industrial markets.