Steel Technologies Inc. reported record net income of $14.5 million on record sales of $254.0 million for the first fiscal quarter of 2005 ended December 31, 2004.

Net income, a record $14.5 million ($1.11 per diluted share) on approximately 13.1 million weighted average shares outstanding, compares with net income of $2.4 million ($0.24 per diluted share) in the year-earlier period, on approximately 10.0 million weighted average shares outstanding. The 31% increase in weighted average diluted shares outstanding resulted from the company's successful completion of a secondary stock offering of 2.9 million shares in March 2004.

Sales, a record $254.0 million, reflect a 94% increase compared to $130.8 million in the same period a year ago.

Comments—"In the first fiscal quarter of 2005, we had record shipments as a result of improved volume across all market segments," said Bradford T. Ray, Chairman and CEO. "Our order book remained robust through what historically is a seasonally soft quarter. First quarter volume was 17% ahead of the first quarter of 2004, and our financial performance reflects the positive impact from increased throughput, a strong pricing environment and recent investments supporting our growth.

"Our Mi-Tech Steel joint venture also experienced substantial growth during the quarter," Ray continued. "Mi-Tech's sales increased 69% over year-earlier levels, fueling a significantly higher contribution to our earnings. Our joint-venture operations continue to play an important role in our North American platform."

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