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Steel Technologies Inc. Expects Record Fourth Quarter

24 September 1999

Steel Technologies Inc. Expects Record Fourth Quarter Results, Comments on Operating Margin Improvements and New Facility Expansion

    LOUISVILLE, Ky.--Sept. 24, 1999--Steel Technologies Inc. today said that it expects to report record results for the fourth quarter and full fiscal year that ends on September 30, 1999. The outlook for better-than-expected results reflects continued strong demand from the Company's automotive-related customers, a strategic focus on value-added products and services, and further improvements in operating expenses.
    "Based on results thus far for the quarter, we expect to report fourth quarter net earnings of approximately $.37 per share on a fully diluted basis, well ahead of the consensus analysts' estimate for the period of $.27 per share," said Bradford T. Ray, President and Chief Operating Officer. "Demand for our products and services is strong and reflects increased customer appreciation for the quality and services we are providing to the marketplace. These trends can be seen in sales, which are expected to be about $101 million for the fourth quarter, or about 12% ahead of last year. Equally important, improved operating margins also are driving our sustained earnings growth as we continue our efforts to improve product mix, productivity, quality, and service capabilities, and as we work to manage the level of operating expenses. Also, our Mi-Tech Steel, Inc. joint venture continues to experience improved results and is expected to make a greater earnings contribution in the fourth quarter.
    "We are accelerating our efforts to differentiate our capabilities in the marketplace and leverage our strengths in order to deliver long-term value to our shareholders. We expect to build upon our record earnings for fiscal 1999, and we expect further improvement in net earnings and other key financial results in 2000 and beyond," added Mr. Ray.
    The Company also announced that it has completed the expansion of its recently acquired steel processing facility in Willoughby, Ohio and that the start-up phase is underway. The Ohio expansion is a follow-on investment to the Company's 1998 acquisition of Roberts Steel, now named Steel Technologies Ohio. "We are excited about the opportunity to provide increased service to the northern Ohio markets," Mr. Ray concluded.
    Steel Technologies Inc. processes flat rolled steel to specified thickness, width, temper, shape and finish requirements for the automotive, appliance, lawn and garden, agricultural, recreational, and office equipment industries, among others. The Company operates eleven production facilities located throughout the United States and Mexico.
    Statements contained in this release which are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (contained in the Company's SEC filings), which could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.