Roanoke Electric Steel (NASDAQ:RESC)
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Roanoke Electric Steel Corporation Reports First Quarter Results
ROANOKE, Va., March 9 /PRNewswire-FirstCall/ -- Roanoke Electric Steel
Corporation reported a profit of $1,533,676 for the first quarter ended January
31, 2004, compared to a loss of $2,129,872 for the same period last year. Basic
and diluted earnings per share were $.14, compared to basic and diluted loss per
share of $.19 in the first quarter of 2003. Sales for the quarter were
$87,255,510, a 42.73% increase from sales of $61,129,954 reported for the 2003
first quarter. Included in the quarterly results was a payment received of
$3,061,820, or $1,410,887 additional earnings ($.13 per share), from graphite
electrode plaintiffs in conjunction with a class action suit for antitrust
violations.
Donald G. Smith, Chairman and Chief Executive Officer, stated:
"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 forthe
quarter. Our fabricating subsidiaries are still hampered by reduced
margins for fabricated products, due to weak nonresidential construction
activity. However, overall gross profit percentages improved for most
of our subsidiariesin the first quarter of 2004, compared to the first
quarter of 2003. Also affecting the results of the quarter were
increased administrative costs in association with ongoing compliance
efforts regarding the Sarbanes-Oxley Act."
"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 secondquarter 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."
Consolidated Statements of Earnings
(Unaudited)
Three Months Ended
January 31,
2004 2003
SALES $ 87,255,510 $ 61,129,954
COST OF SALES 78,403,653 58,056,795
GROSS EARNINGS 8,851,857 3,073,159
OTHER OPERATING EXPENSES (INCOME)
Administrative 7,359,859 5,225,018
Interest, net 1,047,682 1,462,984
Profit sharing 956,488 80,400
Antitrust litigation settlement (3,061,820) (520,960)
Total 6,302,209 6,247,442
EARNINGS (LOSS) BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 2,549,648 (3,174,283)
INCOME TAX EXPENSE (BENEFIT) 1,015,972 (1,272,821)
EARNINGS (LOSS) BEFORE CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING PRINCIPLE 1,533,676 (1,901,462)
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE --- (228,410)
NET EARNINGS (LOSS) $ 1,533,676 $ (2,129,872)
Earnings (loss) per share (basic and
diluted) of common stock:
Earnings (loss) before cumulative
effect of change in accounting
principle $ 0.14 $ (0.17)
Cumulative effect of change in
accounting principle --- (0.02)
Net earnings (loss) per share of $ $
common stock 0.14 (0.19)
Cash dividends per share of common stock $ 0.05 $ 0.05
Weighted average number of common
shares outstanding :
Basic 10,932,813 10,942,813
Diluted 10,970,133 10,958,945
This release contains various forward-lookingstatements which represent the
Company's expectations or beliefs concerning future events. In accordance with
the safe harbor provisions of the securities laws regarding such forward-
looking statements, the Company notes that a variety of factors could cause
actual results and experience to differ materially from those expressed in the
forward-looking statements. The risks and uncertainties that may affect the
operations, performance, development and results of the Company's business
include economic and industry conditions, timing of the recovery within our
steel markets, availability and prices of utilities, supplies and raw materials,
prices of steel products, foreign and domestic competition, foreign trade
polices affecting imports and exports, governmental regulations, interest rates,
inflation, labor relations, environmental concerns and compliance issues and
others.
Roanoke Electric Steel Corporation has steel manufacturing facilities in
Roanoke, Virginia and Huntington, West Virginia,producing angles, rounds,
flats, channels, beams, special sections and billets, which are sold to steel
service centers, fabricators, original equipment manufacturers and other steel
producers. Five subsidiaries are involved in various steel-related activities,
consisting of scrap processing and bar joist, reinforcing bar and truck trailer
beam fabrication.
DATASOURCE: Roanoke Electric Steel Corporation
CONTACT: T. Joe Crawford of Roanoke Electric Steel Corporation,
+1-540-342-1831
Web site: http://www.roanokesteel.com/