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

DATE: TUESDAY, January 18, 1994                   TAG: 9401180020
SECTION: BUSINESS                    PAGE: B5   EDITION: METRO 
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Medium

ROANOKE ELECTRIC STEEL ON WAY TO FULL CAPACITY

Outside, the weather was lousy Monday, but the news was good inside, at Roanoke Electric Steel Corp.'s annual meeting.

The Roanoke-based steel maker told shareholders that it hired 20 workers in December and later this month plans to operate its Roanoke mill at full capacity for the first time in three years.

Donald G. Smith, chairman and chief executive officer, said the new workers are expected to be fully trained and a fourth shift started in the rolling mill. The company will be operating 24 hours a day, seven days a week. The Roanoke producer of speciality steel products for commercial and industrial uses has 450 employees; its total employment, including four subsidiaries, is 1,000.

The company reported 1993 earnings of $4.75 million, or 90 cents per share, up 80 percent from 1992's $2.65 million, or 50 cents per share.

Improved economic conditions helped the steel industry last year, Smith said.

Although the construction industries for which Roanoke Electric Steel's subsidiaries produce fabricated products continued to be depressed and highly competitive, the subsidiaries improved their contributions to earnings, he said.

Highlights of the year included:

A 3.9 percent increase of raw steel production to a record level.

A 14.6 percent increase in sales to $167.3 million, the second-highest level on record.

Increases in working capital and stockholders' equity to record levels.

Because of improved business conditions and continuing efforts to reduce operating costs, the company is pursuing capital projects worth an approximate $10 million, Smith said.

The company's new automobile shredding facility in Franklin County is under construction, and the company is seeking permits to add a ladle furnace to its melt shop in Roanoke. The ladle furnace will increase raw steel production, improve quality and improve operating efficiencies, Smith said.

by CNB