Roanoke Electric Steel Corp. reported net earnings of $5,222,056 on record sales of $118,949,522 for the second quarter and net earnings of $6,755,732 on sales of $206,205,032 for the six months ended April 30, 2004.

Second Quarter Results—Net earnings, $5,222,056, compare to a net loss of $1,476,247 in the second quarter last year. Basic earnings per share were $.48 ($.47 diluted), which compare to basic loss per share of $.13 ($.13 diluted) in the 2003 second quarter. Sales, a record $118,949,522, represent a 54.3% increase compared to sales of $77,075,724 for the same period last year.

Six Month Results—Net earnings of $6,755,732 compare to a net loss of $3,606,119 for the same period last year. Basic earnings per share were $.62 ($.61 diluted), compared to basic loss per share of $.31 ($.31 diluted) last year. Sales, $206,205,032, represent a 49.2% increase from sales of $138,205,678 for the same period last year.

Management Comments—Donald G. Smith, Chairman and CEO, stated: "We are very pleased to report that for the fifth consecutive quarter our earnings per share have improved. Revenues for the quarter were the highest of any quarter in the history of our company. The increase in revenues was attributable to improved selling prices and shipments of most products. Although the cost of scrap, our principal raw material, increased, in most cases we were able to pass the increase along to our customers. Due to our increased revenues and increased capacity utilization, our gross earnings and earnings per share for the quarter were the highest since 1999.

"Many of the markets that the company services appear to be improving,” continued Smith. “One area that has been slow in improving is the nonresidential construction segment; however, during the quarter we saw signs of strengthening in that sector and expect that trend to continue. Our mills continue to be busy, and in early May we decided to start-up our second furnace and caster at the Roanoke mill. This additional capacity should help us meet the increased demand we are experiencing."

Roanoke Electric Steel Corp. has steel manufacturing facilities in Roanoke, Va., and Huntington, W.Va., producing angles, rounds, flats, channels, beams, special sections and billets, which are sold to steel service centers, fabricators, original equipment manufacturers and other steel producers. Five subsidiaries are involved in various steel-related activities, consisting of scrap processing and bar joist, reinforcing bar and truck trailer beam fabrication.