Jan. 25, 2006 — Steel Technologies Inc. reported net income of $3.2 million on sales of $212.6 million for the first fiscal quarter ended December 31, 2005.

The $3.2 million net income ($0.25 per diluted share) compares with a record $14.5 million net income ($1.11 per diluted share) in the year-earlier period. Sales of $212.6 million represent a 16% decline from the record $254.0 million reported for the same period a year ago.

"In our first fiscal quarter of 2006, volume improved 6% sequentially from the previous quarter, along with quarter-to-quarter improvements in operating margins and net income," said Bradford T. Ray, Chairman and CEO. "Although shipments of approximately 270,000 tons were down 8% from year earlier levels, this was in line with expected shipments as indicated in an earlier release.

"Our Mi-Tech Steel joint venture experienced solid results during the quarter," Ray added. "Mi-Tech continues to play an important role in our North American platform."

Concluding, Ray said, "Looking ahead to the second quarter, our current demand is solid across all segments. We expect to realize ongoing sequential improvement in our operating margins, and are very confident that we will continue to expand the value we bring to the market."

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.