Roanoke Electric Steel Corp. reported record net earnings of $15,932,971 on record sales of $143,728,167 for the fourth quarter, and net earnings of $30, 446,248 on sales of $479,377,188 for the fiscal year ended October 31, 2004.

Fourth Quarter Results—Record net earnings of $15,932,971 compare to earnings of $700,735 in the fourth quarter last year. Basic earnings per share were $1.45 ($1.44 diluted), compared to earnings per share of $.06 ($.06 diluted) in the 2003 fourth quarter. Record sales of $143,728,167 represent a 57% increase from sales of $91,600,033 for the same period last year.

Full Year Results—Record net earnings of $30,446,248 compare to a net loss of $3,224,953 for fiscal 2003. Basic earnings per share were $2.78 ($2.76 diluted), compared to basic loss per share of $.29 ($.29 diluted) last year. Record sales of $479,377,188 represent a 54% increase from sales of $312,090,956 for fiscal 2003.

Comments—Donald G. Smith, Chairman and CEO, and T. Joe Crawford, President and COO, stated: "Fiscal year 2004 was the best year in the history of our company, which was especially pleasing given the challenges of the last three years. The positive momentum which was established during 2003 not only continued, but grew significantly, with the establishment of new annual record totals for sales, net earnings and earnings per share. The improved performance for the year was, primarily, due to increased shipments and margins for mill products, as demand continued to be strong. The improved margins were attributable to increased selling prices. Our employees worked extremely hard in responding to the increased demand, and a number of production and shipment records were also set during the year to help meet our customers' needs.

"As we look to fiscal 2005, we anticipate that the positive factors which have been driving our markets are sustainable and present a scenario for continued healthy price levels and volume for our products. Although our first quarter is historically challenging, due to the holidays and weather issues, our overall outlook for the year remains very positive."

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 conduct steel-related activities including scrap processing and bar joist, reinforcing bar and truck trailer beam fabrication.