NS Group, Inc. announced net income of $20.6 million on net sales of $109.4 million for the quarter ended June 30, 2004.

Second Quarter Results—Net income of $20.6 million ($0.96 per diluted share) compares to net income of $5.0 million ($0.24 per diluted share) in the first quarter of 2004, which included $1.9 million ($0.09 per diluted share) in restructuring charges. Net sales of $109.4 million represent a 29% increase over sales for the first quarter of 2004. Operating income of $21.6 compares to first quarter 2004 operating income of $5.5 million, which included restructuring charges of $1.9 million.

Six Month Results—Net income of $25.6 million ($1.20 per diluted share) compares to a net loss of $18.6 million ($0.90 loss per diluted share) in the prior year period. Net sales of $194.0 million compare to $116.4 million for the six months ended June 30, 2003. Operating income of $27.1 million compares to an operating loss of $15.7 million for the comparable prior year period.

Comments—President and CEO, Rene J. Robichaud, stated, "We are pleased to report record results for the second quarter. Our net income quadrupled from the first quarter of 2004 and is more than double our previous record of three years ago. This is our sixth consecutive quarterly improvement in financial performance. Our results benefited from significantly higher selling prices which, when combined with lower priced inventory on hand at the beginning of the period, provided higher than normal margins. We are currently net debt free and, in this environment, we expect to grow our cash position. Importantly, we believe our employees' efforts regarding manufacturing excellence have been successful as evidenced by company records in product yields, quality and customer service. I thank them for these fine efforts."

Robichaud continued, "Natural gas and world oil prices are still at high levels. Overall demand for our energy products is good and pricing is strong. While we anticipate our steel raw material costs will increase again in the third and fourth quarters, we expect OCTG demand and prices will enable us to achieve strong profitability through the remainder of the year."

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