Jan. 5, 2006 — Roanoke Electric Steel Corp. reported net earnings of $17,488,418 on sales of $141,034,800 for the fourth quarter, and record net earnings of $40,319,433 on record sales of $546,612,163 for the fiscal year ended October 31, 2005.
Fourth Quarter Results—The $17,488,418 net earnings reflects a 9.8% increase compared to net earnings of $15,932,971 for the same period last year. Basic earnings per share were $1.57 ($1.55 diluted), compared to $1.45 ($1.44 diluted) in the fourth quarter of 2004. Sales, $141,034,800, compare to sales of $139,137,692 for the same period last year.
Fiscal Year Results—Record net earnings of $40,319,433 reflect a 32.4% increase compared to the previous record net earnings of $30,446,248 achieved last year. Basic earnings per share were $3.63 ($3.59 diluted), compared to $2.78 ($2.76 diluted) last year. Sales, a record $546,612,163, reflect a 17.4% increase over previous record sales of $465,586,429 for the same period last year.
Comments—Donald G. Smith, Chairman and CEO, and T. Joe Crawford, President and COO, stated, "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."
Roanoke Electric Steel has steel manufacturing facilities in Roanoke, Va., and Huntington, W.Va., 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. Four subsidiaries are involved in various steel-related activities, consisting of scrap processing and bar joists and truck trailer beam fabrication.