Roanoke Electric Steel Corp. reported net earnings of $6,582,181 on sales of $137,868,454 for the second quarter ended April 30, 2005.
Second Quarter Results—The $6,582,181 net earnings ($.59 Basic earnings per share ($.58 diluted)) compare to net earnings of $5,222,056 ($.48 per share ($.47 diluted)) for the same period last year, or an increase of 26%. Sales, $137,868,454, represent a 19% increase over sales of $116,012,871 for the same period last year.
Six Month Results—Net earnings of $15,768,055 ($1.42 basic earnings per share ($1.40 diluted)), reflect an increase of 133% compared to net earnings of $6,755,732 ($.62 per share ($.61 diluted)) for the same period last year. Sales were $269,178,437, a 34% increase from sales of $201,186,556 for the same period last year.
Donald G. Smith, Chairman and CEO, and T. Joe Crawford, President and COO, stated: "We are very pleased to report that earnings for the second quarter of fiscal 2005 were higher than the same period last year, primarily due to an increase in selling prices for most of the Company's products. Generally, operating levels for the current period were lower, compared to last year, reflecting more guarded buying patterns within the steel consuming markets due to concerns about inventory levels and declining prices. In that regard, some of the company's selling prices have declined in recent months as the cost of scrap metal, our principal raw material, has declined, and we have followed the industry in adjusting our prices in order to remain competitive.
"Looking forward to the balance of fiscal 2005, we expect demand to be sufficiently high and margins adequate to support healthy profits. In general, the outlook for merchant products appears to be better in the second half of the year than the first half. Although demand in the nonresidential construction market has been slow to recover, pricing has continued to improve, and we are optimistic that business levels will increase during the balance of the year. Overall, we remain optimistic about 2005 and support the market consensus that business activity in the second half of the year will be an improvement from that experienced in the first six months."