Republic Engineered Products Inc. reported net income of $39.3 million on net sales of $1.19 billion for the year ended December 31, 2004.

Net income, $39.3 million, compares to a net loss of $162.5 million in 2003. Net sales of $1.19 billion reflect a 61.9% increase compared to $735 million in 2003. Gross profit was $119.8 million, which compares to $26.4 million in 2003. The company shipped 1.8 million tons in 2004, compared to 1.4 million in 2003.

Results reflect a change in Republic's method of accounting for inventory, effective January 1, 2004, from the first in, first out (FIFO) method to the last-in, first-out (LIFO) method. As a result of this change, the improvement in reported results from 2003 to 2004 is less than it would be without the change in accounting.

"Our performance in 2004, our first full year as a new company, was gratifying and demonstrated that we were up to the challenges of our business," said Joseph L. Lapinsky, Republic's President and CEO. "With the support of our customers, suppliers, communities and employees, we have established a good foundation for a successful future. That foundation includes the installation of a new caster at our Canton facility, which is now underway."

As a result of its 2004 financial performance, Republic distributed approximately $11.7 million in profit sharing payments to its employees. Some $2.0 million of that amount was distributed to salaried employees, with 25% of the remaining $9.7 million distributed to hourly employees. The remainder was deposited in a benefits trust established for retiree healthcare, as dictated by Republic's labor contract with the United Steelworkers of America. The expense of the profit-sharing programs is reflected in the 2004 financial results.

Republic Engineered Products Inc. is a leading North American supplier of special bar quality (SBQ) steel. Headquartered in Fairlawn, Ohio, Republic operates steelmaking centers in Canton and Lorain, Ohio, and value-added rolling and finishing facilities in Canton, Lorain and Massillon, Ohio; Lackawanna, N.Y.; Gary, Ind.; and Hamilton, Ont., Canada. Republic employs approximately 2400 people.