
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 20, 1991                   TAG: 9102200093
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

ROANOKE STEEL HAS 54% DROP IN PROFITS

Roanoke Electric Steel Corp. on Tuesday reported a 54 percent decline in profits in its first quarter, saying business has been affected by the economy and a slowdown in construction.

The Roanoke-based producer of speciality steel products reported net earnings of $737,772 for the quarter ended Jan. 31, down from $1.6 million in the same quarter last year. Earnings per share fell to 14 cents from 30 cents last year. Sales were $29.9 million, down 20 percent from $37.4 million.

Earnings also were adversely affected during the period by a reduction in plant operating rates, which resulted in higher unit production costs and lower gross profit margins, said Donald G. Smith, the company's chairman and chief executive officer. - Staff report

by CNB