Steel Technologies Inc. (Louisville, KY, U.S.) has reported its results for the first quarter of fiscal 2004. For the 3 months ended Dec. 31, 2003, sales increased 4 percent to a record U.S. $130.8 million from $126 million for the same period a year ago. Net income for the quarter was $2.4 million or $0.24 per diluted share compared with net income of $3.8 million or $0.38 per diluted share in the year-earlier quarter. Results for the first fiscal quarter of 2004 reflected the benefit of approximately $0.04 per share as a result of reductions in state property tax obligations and health insurance reserves.
"We achieved record sales for the quarter, reflecting continued market growth and the impact of a recovering economy," said Bradford T. Ray, chairman and CEO in a company statement announcing the earnings. "Our tons shipped were up 7.5 percent over year-earlier levels and our operating income continued to improve sequentially from the previous two quarters. In addition, our Mi-Tech Steel joint venture's earnings increased on the strength of higher volumes through its strategically positioned locations.
Separately, the company announced that it has filed a registration statement with the Securities and Exchange Commission (SEC) relating to a proposed public offering of 2,700,000 shares of its common stock. The company will issue and sell 2,500,000 shares and the selling shareholders named in the registration statement will sell 200,000 shares. It will not receive any portion of the proceeds from the sales by the selling shareholders.
CIBC World Markets, McDonald Investments Inc., SunTrust Robinson Humphrey, and BB&T Capital Markets will manage the offering. The company has agreed to grant the underwriters an option to purchase up to 15 percent of the total number of shares to be sold by the company and the selling shareholders in this offering to cover over-allotments.
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