Roanoke Electric Steel Corp. reported net earnings of $7,757,545 on record sales of $129,443,989 for the third quarter ended July 31, 2004.

Third Quarter Results—Net earnings of $7,757,545 compared to a net loss of $319,569 in the third quarter last year. Basic earnings per share were $.71 ($.70 diluted), compared to basic loss per share of $.03 ($.03 diluted) in the 2003 third quarter. Sales were a record $129,443,989, up 57% from sales of $82,285,245 for the same period last year.

Nine Month Results—Net earnings of $14,513,277 compare to a net loss of $3,925,688 for the same period last year. Basic earnings per share were $1.33 ($1.32 diluted), compared to basic loss per share of $.36 ($.36 diluted) last year. Sales were $335,649,021, a 52% increase from sales of $220,490,923 for the same period last year.

Comments—Donald G. Smith, Chairman and CEO, and T. Joe Crawford, President and COO, stated: "We are very pleased to report that for the sixth consecutive quarter our per-share results 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 as demand continued to be strong. The increase in revenues and rising capacity utilization has helped the Company achieve the highest quarterly earnings per share since the fourth quarter of 1997. We have managed well in a rapidly rising cost and price environment, enabling us to maintain our profit margins while continuing to offer competitive prices on our products.

"The quarter's results reflect the volatile nature of today's domestic steel industry as the company and the steel industry continue to attempt to cope with the unpredictable prices of scrap, the company's principal raw material. Our mills and melt shops continue to be busy and we are working near capacity. The second furnace and caster, which was restarted in early June at our Roanoke facility, has helped us increase our steel output in order to 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.