Harris Steel reports second quarter earnings

Harris Steel reports second quarter earnings

Canadian concrete reinforcing fabricator and distributor Harris Steel Group Inc., announced second quarter earnings increased 3.4 percent due to continued strength in the reinforcing products segment. Total sales were $252.1 million Canadian (CA$) for the second quarter 2005, an increase over the CA$178 million seen for the same period in 2004. Year-to-date net sales were reported as CA$444.8 million, a 30 percent increase from same period in 2004. Net income for the second quarter was reported as CA$17.6 million, or CA$0.65 per diluted share, compared to CA$17 million, or CA$0.63 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was CA$29.7 million while year-to-date 2004 net income was CA$29.3 million. John Harris, chairman and CEO, said, "In the second quarter of 2005, we saw a divergence in performance between segments, where weakness in the industrial products segment was offset by continuing strength in the reinforcing products segment. In the first half of 2005, earnings before tax from industrial products contributed $15.6 million, or 30.0% of pre-tax earnings for the consolidated operations. Second quarter 2005 pre-tax earnings from industrial products were $5.8 million, compared to $9.8 million in the first quarter of 2005.” Commenting on Harris’ outlook, Mr. Harris said, “We began to experience margin pressure in industrial products toward the end of first quarter, and this pressure continued throughout second quarter as pricing softened. We expect this weakness to continue in the third quarter." Harris Steel Group, through its subsidiaries, is engaged in the distribution, fabrication and placing of concrete reinforcing steel, including epoxy-coated reinforcing steel; the design and installation of concrete post-tensioning systems; the manufacture and distribution of wire and wire products, welded wire mesh and cold finished bar; and the manufacture and distribution of heavy industrial steel grating, aluminum grating and expanded metal.