8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): May 20, 2003

ROANOKE ELECTRIC STEEL CORPORATION
(Exact name of Registrant as specified in its charter)
Virginia	0-2389	54-0585263
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
102 Westside Blvd., N.W., Roanoke, Virginia		24017
(Address of principal executive offices)		(Zip Code)
Registrant's telephone number, including area code: (540) 342-1831

Item 7.		Financial Statements and Exhibits
	(c)	Exhibits
		Exhibit No.	Description
		99.1	News Release of Roanoke Electric Steel Corporation, issued May 20, 2003

Item 9.   Regulation FD Disclosure (Item 12, Results of Operations and Financial Condition)

              The following information is furnished pursuant to Item 12, "Results of Operations and Financial Condition":

              On May 20, 2003, Roanoke Electric Steel Corporation issued a news release reporting its financial results for the fiscal quarter ended April 30, 2003. A copy of the news release is attached hereto as Exhibit 99.1

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this current report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Roanoke Electric Steel Corporation
	By: /s/ Donald G. Smith
	Donald G. Smith
	Chairman and Chief Executive Officer
Dated: May 20, 2003

INDEX TO EXHIBITS

 

Exhibit No.	Description
99.1	News Release of Roanoke Electric Steel Corporation, issued May 20, 2003

  EX-99.3 OTHER FIN ST 3 news2ndqtr03.htm 2ND QUARTER NEWS RELEASE

NEWS RELEASE	FOR IMMEDIATE RELEASE
	CONTACT: T. Joe Crawford
		(540) 342-1831

ROANOKE ELECTRIC STEEL CORPORATION
REPORTS SECOND QUARTER RESULTS

          ROANOKE, Virginia, May 20, 2003 -- Roanoke Electric Steel Corporation (Nasdaq: RESC) today reported a loss for the second quarter ended April 30, 2003, of $1,476,247, compared to a loss of $224,361 in the second quarter last year. Basic loss per share for the quarter was $.13, compared to basic loss per share of $.02 in the 2002 second quarter. Sales for the quarter were $77,075,724, up 20.2% from sales of $64,118,964 for the same period last year.

          For the six months ended April 30, 2003, the Company reported a loss of $3,377,709, compared to a loss of $5,098,903 for the same period last year. Basic loss per share was $.31, compared to basic loss per share of $.47 last year. Sales for the six months of 2003 were $138,205,678, a 13.2% increase from sales of $122,058,874 for the same period last year.

          Donald G. Smith, Chairman and Chief Executive Officer, stated:

"We are pleased to report increased revenues for the quarter, which were attributable to improved selling prices and shipments of merchant bar products, billets and specialty steel products. However, selling prices and shipments of fabricated products declined further during the quarter, due to continued weakness in nonresidential construction, which contributed to the reduction in gross earnings. Also, gross earnings declined, in spite of the improved revenues, as a result of a 40% increase in the cost per ton of scrap steel, our main raw material, and lower production levels, which increased production costs and lowered margins.

"Price increases for merchant bar products, that were effective midway through the second quarter, will be realized for the entire third quarter, which combined with lower scrap costs should provide improved margins. However, improvements in nonresidential construction activity are not anticipated until later in the year, at the earliest. Our results for the third quarter will be dependent upon how these developments impact operations."

          This release contains various forward-looking statements which represent the Company's expectations or beliefs concerning future events. In accordance with the safe harbor provisions of the securities laws regarding such forward-looking statements, the Company notes that a variety of factors could cause actual results and experience to differ materially from those expressed in the forward-looking statements, including, but not limited to, economic and industry conditions, availability and prices of supplies, prices of steel products, competition, governmental regulations, interest rates, inflation, labor relations and environmental concerns.

Consolidated Statements of Loss

		(Unaudited)				(Unaudited)
		Three Months Ended				Six Months Ended
		April 30,				April 30,
		2003		2002		2003		2002
Sales	$	77,075,724	$	64,118,964	$	138,205,678	$	122,058,874
Cost of sales		72,799,345		57,816,757		130,856,140		116,411,432
Gross earnings		4,276,379		6,302,207		7,349,538		5,647,442
Other operating expenses		6,740,496		6,679,748		12,987,938		14,153,237
Loss before income taxes		(2,464,117)		(377,541)		(5,638,400)		(8,505,795)
Income tax benefit		(987,870)		(153,180)		(2,260,691)		(3,406,892)
Net loss	$	(1,476,247)	$	(224,361)	$	(3,377,709)	$	(5,098,903)
Net loss per share of common stock:
Basic	$	(0.13)	$	(0.02)	$	(0.31)	$	(0.47)
Diluted	$	(0.13)	$	(0.02)	$	(0.31)	$	(0.47)
Cash dividends per share of
common stock	$	0.05	$	0.10	$	0.10	$	0.20
Weighted average number of
common shares outstanding:
Basic		10,942,813		10,940,025		10,942,813		10,925,807
Diluted		10,947,957		10,975,991		10,952,580		10,965,713

          Roanoke Electric Steel Corporation has steel manufacturing facilities in Roanoke, Virginia and Huntington, West Virginia, 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, bar joist fabrication and reinforcing bar fabrication.

# # #

-----END PRIVACY-ENHANCED MESSAGE-----

EX-99.3 OTHER FIN ST

NEWS RELEASE	FOR IMMEDIATE RELEASE
	CONTACT: T. Joe Crawford
		(540) 342-1831