Oregon Steel Mills, Inc. is increasing its fourth quarter 2004 earnings estimate. The company now estimates fourth quarter net income from continuing operations of $1.25 to $1.35 per diluted share based on approximately 35.1 million diluted weighted average shares outstanding during the fourth quarter of 2004.

Previous forecasts, set in early November, forecasted fourth quarter net income from continuing operations within a range of $1.05 to $1.15 per diluted share, exclusive of any further labor dispute settlement adjustments. The company attributes its expectations for improved results, in part, to higher-than-anticipated plate demand and plate pricing and lower-than-forecasted scrap prices.

The company notes that the estimated amounts exclude the estimated $4.5 million charge (approximately $.13 per diluted share) in the fourth quarter of 2004 related to the previously disclosed early retirement option offered to certain union employees of the company. The company expects to have an effective income tax rate of approximately three percent in the fourth quarter of 2004.

The company will announce its final 2004 annual and fourth quarter financial results and provide its outlook for 2005 during the first week of March 2005.

Oregon Steel Mills, Inc. is organized into two divisions. The Oregon Steel Division produces steel plate, coil, welded pipe and structural tubing from plants located in Portland and Camrose, Alta., Canada. The Rocky Mountain Steel Mills Division, located in Pueblo, Colo., produces steel rail, rod, bar, and tubular products.