Roanoke Electric Steel Corp. reported a loss for the third quarter of $594,620, compared to earnings of $81,646 in the third quarter last year. Sales for the quarter were $69.779 million, down 12 percent from $79.42 million for the same time last year.
For the nine months ended July 31, the company reported a loss of $5.7 million, compared to earnings of $1.579 million the same period last year. Sales for the nine months of 2002 were $191.838 million, a 17.4 percent decrease from 2001’s sales of $232.116 million.
Donald Smith, chairman and CEO, said, "Weak market conditions and increased competition continued to affect selling prices and shipments for most of our products, which negatively affected the results for the quarter. Fabricated products were the most affected and experienced the greatest reduction in margins, as business conditions within the construction industry remained depressed.
“Prices, shipments and margins of specialty products were lower as certain niche markets continued to suffer. However, our results were favorably impacted by improved billet shipments and production. In addition, higher selling prices boosted margins for merchant bar products, even though markets softened, resulting in reduced shipments.
"We are hopeful the rising selling prices for merchant bar products will help to maintain margins, which are being pressured by a recent softening in those markets. Operating rates are improving at our West Virginia mill, which should improve margins on billets and specialty products produced at that location. Our fabricating subsidiaries will continue to struggle, but we expect any further erosion of profits to be minimal in the fourth quarter."Latest from Recycling Today
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