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NS Group Reports 2003 Results

Feb. 12, 2004 — NS Group, Inc. announced net income of $3.5 million on net sales of $69.0 million for the fourth quarter and a net loss of $17.3 million on net sales of $259.0 million for the year ended December 31, 2003.

Fourth Quarter Results — Net income, $3.5 million ($0.17 per diluted share), compares to a net loss of $2.2 million ($0.11 per diluted share) in the third quarter of 2003. Net income for the fourth quarter of 2003 included other income related to a favorable legal settlement, which increased net income by $4.0 million ($0.19 per diluted share).

Net sales, $69.0 million, represent a 6% decrease from the third quarter of 2003. The company reported an operating loss of $0.4 million for the fourth quarter compared to an operating loss of $2.0 million in the third quarter of 2003.

Full Year Results — The net loss of $17.3 million ($0.83 per diluted share) compared to a net loss of $39.9 million ($1.93 per diluted share) in 2002. Net sales, $259.0 million, compare to $192.4 million in the year ended December 31, 2002. Operating loss for the year was $18.2 million, compared to an operating loss of $34.1 million for 2002.

Comments — President and CEO, René Robichaud said, "I am pleased with the consistent progress in financial results during 2003. We have achieved four consecutive quarters of operating improvements primarily as a result of cost-cutting initiatives and discretionary spending measures implemented over a year ago. Operating losses were reduced significantly in each quarter during a challenging 2003. Our employees have made great strides in improving performance and setting many corporate records for safety, productivity and efficiency. This very effective cost reduction plan remains in place as we enter the new year."

Robichaud went on to say, "We expect to continue improving our financial performance and be solidly profitable in the first quarter. There are several bullish factors that provide an optimistic outlook for 2004 and beyond. The combination of strong economic growth, high energy prices and relatively low OCTG inventories suggests that our industry will be able to generate healthy margins despite sharply rising steel costs."

NS Group, Inc. is a leading producer of seamless and welded tubular products serving the energy industry. These products are used in the drilling, exploration and transmission of oil and natural gas. The company's tubular products are marketed primarily in the United States and certain foreign markets.

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