Roanoke Electric Steel Reports Second Quarter Results

Roanoke Electric Steel Corp. reported a loss for the second quarter of $1.476 million, compared to a loss of $224,361 in the second quarter last year. Sales for the quarter were $77 million, a 20 percent increase from sales of $64 million for the same period last year.

For the six months ended April 30, the company reported a loss of $3.378 million, compared to a loss of $5.1 million for the same period last year. Sales for the six months were $138.2 million, a 13.2 percent increase from sales the same period last year.

 “We are pleased to report increased revenues for the quarter, which were attributable to improved selling prices and shipments of merchant bar products, billets and specialty steel products. However, selling prices and shipments of fabricated products declined further during the quarter, due to continued weakness in nonresidential construction, which contributed to the reduction in gross earnings. Also, gross earnings declined, in spite of the improved revenues, as a result of a 40 percent increase in the cost per ton of scrap steel, our main raw material, and lower production levels, which increased production costs and lowered margins, said Donald G. Smith, chairman and CEO.