Hughes Supply Raises Second Quarter Sales and Earnings Outlook

Hughes Supply Raises Second Quarter Sales and Earnings Outlook
Earnings Per Share Expected to Grow 41%-48% to $1.13-$1.18 with Same Store
Sales Growth of 14%-16% 


ORLANDO, Fla., July 7  /PRNewswire-FirstCall/ -- Hughes Supply, Inc., a leading
distributor of construction, repair and maintenance-related products, today
announced that due to continued strong demand and higher commodity prices in
most of its businesses, revenue and earnings for its second quarter ending July
30, 2004 are expected to exceed the company's previously issued guidance.
Revenues for the second quarter of fiscal year 2005 are now expected to be in
the range of $1,115 million to $1,125 million, an increase over the previous
year of 37% to 38%, with estimated same store sales growth of 14% to 16%. Net
income is expected to be $35.0 million to $36.6 million, an increase over the
previous year of 87% to 96%. Earnings per diluted share is expected to be $1.13
to $1.18, on approximately 31.0 million average shares, compared to $0.80 per
diluted share, on approximately 23.3 million average shares, in the prior
year's second quarter, an increase of 41% to 48%. The acquisition of Todd Pipe
& Supply, announced June 1, 2004, is expected to add approximately $0.04 to
diluted earnings per share in the second quarter, and is included in the
revised outlook.

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The company continues to benefit from increased commercial and public sector
construction activity and continued strength in the residential construction
market. In addition, prices for commodity-based products, although beginning to
stabilize or moderate, remain at high levels. As expected, the higher commodity
prices are increasing the Company's cost of goods sold, which are recorded
primarily on a moving average cost basis, resulting in lower margins than
reported in the first quarter, but still higher than the previous year's second
quarter.

Tom Morgan, President and Chief Executive Officer said, "We continued to see
strong demand and higher prices across most of our businesses in the months of
May and June. Residential construction activity remained robust, driven
primarily by the high population growth markets we serve, and the improved
level of commercial construction activity we began to see in the second half of
last year has strengthened further. However, higher commodity prices, which we
have successfully passed on to customers, are beginning to moderate in many
cases.

"As we indicated in our previous guidance, we expect commodity prices to
correct themselves in the next few months, with a corresponding decrease in
sales and margins. In addition, the pickup in commercial and public sector
construction that began in the latter half of the previous fiscal year, will
make comparisons in the third and fourth quarters more challenging. We remain
cautious for the remainder of the year; therefore, the outlook for the third
and fourth quarters of fiscal year 2005 remains unchanged. We will provide a
detailed outlook for the third quarter in our second quarter earnings
conference call," concluded Morgan.

Hughes will issue its second quarter earnings release on Tuesday, August 24,
2004, after market close and will hold a conference call at 9:00 a.m. Eastern
time on Wednesday, August 25, 2004 to discuss second quarter earnings and
additional segment detail, along with the third quarter outlook. This
conference call can be accessed via the web at: http://www.hughessupply.com/ by
selecting the Investors tab, or via telephone at: 888-283-3870; pass code
Hughes; leader Mr. David Bearman. A replay of the conference call will be
available on the website until September 25, 2004, or you may dial
866-357-4212; passcode Hughes.

About Hughes Supply, Inc.

Hughes Supply, Inc., founded in 1928, is one of the nation's largest
diversified wholesale distributors of construction, repair and maintenance-
related products, with nearly 500 locations in 38 states.   Headquartered in
Orlando, Florida, Hughes employs approximately 8,900 associates and generates
annual revenues of approximately $3.5 billion.  Hughes is a Fortune 500 company
and was named the #2 Most Admired Company in America in the Wholesalers:
Diversified Industry segment by Fortune Magazine. For additional information on
Hughes, you may visit http://www.hughessupply.com/

Except for historical information, all other information discussed in this news
release consists of forward-looking statements under the Private Securities
Litigation Reform Act of 1995. When used in this report, the words "believe,"
"anticipate," "estimate," "expect," "may," "will," "should," "plan," "intend,"
"project" and similar expressions are intended to identify forward-looking
statements. These forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be different from any future results,
performance, and achievements expressed or implied by these statements. These
risks and uncertainties include, but are not limited to, the strength of the
construction market and the general economy, fluctuating commodity prices and
unexpected product shortages, competition, success in integrating, and
achieving expected profitability from, acquired businesses, reliance on key
personnel, overseas movement of manufacturing facilities, delay in implementing
operating systems, our fixed cost structure, product purchasing and supply,
customer credit policies, and other factors set forth from time to time in
filings with the Securities and Exchange Commission.  The forward-looking
statements included in this news release are made only as of the date of this
news release and under section 27A of the Securities Act and section 21E of the
Exchange Act. Hughes Supply does not have any obligation to publicly update any
forward-looking statements to reflect subsequent events or circumstances. 

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DATASOURCE: Hughes Supply, Inc.



CONTACT:  Arleen Llerandi, Director, Investor Relations, Hughes Supply,

Inc., [phone]



Web site:  http://www.hughessupply.com/ 

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