Steel Technologies Inc. announced that it expects results for the fourth quarter ending September 30, 2005, to reflect lower-than-anticipated shipments and further margin compression.

The company expects shipments to be 5% below the projections stated in its July conference call, a decrease that is attributed to greater-than-usual softening of the market over the quarter due to excess inventory throughout the supply chain. During the quarter, the company also utilized higher-cost materials as prices were declining, which will also impact the margin.

The company expects to report fourth quarter sales of approximately $200 million and shipments of approximately 250,000 tons. Steel Technologies anticipates that earnings per diluted share for the fourth fiscal quarter and fiscal year ended September 30, 2005, will total approximately $0.06 and $2.77, respectively.

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for a wide variety of applications. The company has 20 facilities, including its joint-venture operations, located throughout the United States and Mexico.