Roanoke Electric Steel Corp. Reports First Quarter Results

Roanoke Electric Steel Corp. reported a profit of $1.534 million for the first quarter, compared to a loss of $2.129 million the same period last year.

Sales for the quarter were $87.255 million, a 42.73 percent increase from sales of $61.120 million reported for the 2003 first quarter.

In commenting on the results for the quarter, Donald Smith, chairman and CEO, said, "We are very pleased to report that for the fourth consecutive quarter our earnings per share have improved. The quarter was positively affected by an increase in selling prices for the majority of our products, as well as an increase in tonnage shipped across most of our product lines. The increased costs of scrap, our principal raw material, and alloys had a negative impact on the results for the quarter. 

In conclusion, Smith noted that higher raw material prices are having an impact on business. “We continue our efforts to pass price increases along to our customers, due to the increase in raw material costs. Three price increases for merchant and structural products, which have already been announced, will take effect during the second quarter and will hopefully help maintain profit margins.

“We expect our fabricating facilities to continue to struggle, but our rolling mills and melt shops continue to be busy and, in some instances, are adding additional shifts to keep pace with rising demand for our products. Business conditions appear to be improving in certain markets, and we hope the momentum we have achieved over the last four quarters can continue."