Roanoke Electric Steel reports record year-end results
Virginia-based steel manufacturer Roanoke Electric Steel Corporation reported its net sales for the fourth quarter ended October 31 totaled $141'034'800, a 1.0 percent increase from fourth quarter 2004 net sales of $139'137'692.
The net increase in sales was mostly due to an improvement in pricing for the company's products.
The company reported a quarterly net income of $17,488,418, or $1.55 per diluted share, compared to $15,932,971, or $1.44 per diluted share, earned during the fourth quarter of 2004. Year-to-date net income for the fourth quarter of 2005 totaled $40,319,433, compared to the $30,446,248 earned during the same period last year.
Roanoke Electric Chairman and CEO, Donald G. Smith, and T. Joe Crawford, President and COO, commented on the fourth quarter results:
"We are pleased to announce that for the second year in a row we have established new annual record totals for sales, net earnings and earnings per share, as the upward momentum and strong business conditions experienced in 2004 continued in 2005. The sales increase was due to improved average selling prices for most of our products. The improvement in average selling prices was principally due to the volatile
scrap market, which prompted industry-wide price increases due to the rising cost of
scrap steel.
During 2006, we look forward with excitement and anticipation to the completion of the previously announced combination with Steel Dynamics, Inc. The merger will place the Company in a better position to undertake necessary capital projects, meet competitive pressures, and serve customers more efficiently. The financial strength of Steel Dynamics, Inc. will permit the Company to obtain better economies of scale and greater opportunities for growth during the coming years."
The company has
manufacturing facilities in Roanoke, Virginia and Huntington, West Virginia which produce angles, rounds,
flats, channels,
beams, special sections, and billets. The company also owns four steel-related subsidies consisting of
scrap processing, bar joists, and truck trailer beam
fabrication.