Steel Technologies Inc. expects results for the third fiscal quarter to reflect lower-than-anticipated shipments and further margin compression.

The company now expects shipments to be 10% below the projections stated in its April conference call, the result, it says, of more significant than anticipated market inventory adjustments and slowing demand.

For the three months ending June 30, 2005, the company expects to report sales of approximately $260 million, and tons shipped for the third quarter are expected to total approximately 300,000 tons. In addition, the impact of continued price declines is contributing to increased margin pressure over the short term. As a result of these factors, Steel Technologies expects to report earnings of approximately $0.42 per diluted share for the third quarter ending June 30, 2005.

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, office furniture, agriculture, railcar, construction, hardware, and consumer goods. The company has 20 facilities, including its joint-venture operations, located throughout the United States and Mexico.