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): September 2, 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 September 2, 2003

Item 12. Results of Operations and Financial Condition

On September 2, 2003, Roanoke Electric Steel Corporation issued a news release reporting its financial results for the fiscal quarter ended July 31, 2003. A copy of the news release is furnished and attached as Exhibit 99.1 of this report.

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: September 2, 2003

INDEX TO EXHIBITS

Exhibit No. Description

99.1 News Release of Roanoke Electric Steel Corporation, issued September 2, 2003

EX-99 3 nrl3rd03.htm EXHIBIT 99.1 (NEWS RELEASE FOR 9-02-03)

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

ROANOKE ELECTRIC STEEL CORPORATION
REPORTS THIRD QUARTER RESULTS

          ROANOKE, Virginia, September 2, 2003 -- Roanoke Electric Steel Corporation (Nasdaq: RESC) today reported a loss for the third quarter ended July 31, 2003, of $319,569, compared to a loss of $594,620 in the third quarter last year. Basic loss per share for the quarter was $.03, compared to basic loss per share of $.05 in the 2002 third quarter. Sales for the quarter were $82,285,245, up 17.9% from sales of $69,779,452 for the same period last year.

          For the nine months ended July 31, 2003, the Company reported a loss of $3,925,688, compared to a loss of $5,693,523 for the same period last year. Basic loss per share was $.36, compared to basic loss per share of $.52 last year. The 2003 results included a $228,410 charge for the cumulative effect of a change in accounting principle, which amounted to $.02 per share. Sales for the nine months of 2003 were $220,490,923, a 14.9% increase from sales of $191,838,326 for the same period last year.

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

          "For the third consecutive quarter, revenues improved over the prior year, which is very encouraging. During the third quarter, higher prices for all product classes and increased shipments of merchant bar, specialty products and fabricated products contributed to the improvements in sales and gross earnings. However, lower billet shipments and increased costs of energy and scrap steel, our main raw material, had a negative impact on gross earnings. Profit margins for merchant bar products improved during the quarter, but consolidated earnings continued to be hampered by low margins for fabricated products due to weak nonresidential construction activity.
         "Orders, backlogs and margins for merchant bar products have improved dramatically, and we expect these developments to continue into the fourth quarter. We look for increased scrap steel prices going forward, but an announced selling price increase, effective at the end of August, should offset the increased scrap cost and maintain profit margins. However, we expect little improvement in nonresidential construction, and fabricated products will continue to have a negative effect on earnings."

Consolidated Statements of Loss

		(Unaudited)				(Unaudited)
		Three Months Ended				Nine Months Ended
		July 31,				July 31,
		2003		2002		2003		2002
SALES	$	82,285,245	$	69,779,452	$	220,490,923	$	191,838,326
COST OF SALES		76,028,790		63,776,351		206,884,930		180,187,783
GROSS EARNINGS		6,256,455		6,003,101		13,605,993		11,650,543
OTHER OPERATING EXPENSES (INCOME)
Administrative		5,471,207		5,670,808		16,318,519		16,899,760
Interest, net		1,246,546		1,306,974		3,752,732		4,174,341
Profit sharing		75,000		20,000		230,400		76,918
Antitrust litigation settlement		---		---		(520,960)		---
Total		6,792,753		6,997,782		19,780,691		21,151,019
LOSS BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE		(536,298)		(994,681)		(6,174,698)		(9,500,476)
INCOME TAX BENEFIT		(216,729)		(400,061)		(2,477,420)		(3,806,953)
LOSS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE		(319,569)		(594,620)		(3,697,278)		(5,693,523)
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE		---		---		(228,410)		---
NET LOSS	$	(319,569)	$	(594,620)	$	(3,925,688)	$	(5,693,523)
Net loss per share (basic and diluted) of common stock:
Loss before cumulative effect of change
in accounting principle	$	(0.03)	$	(0.05)	$	(0.34)	$	(0.52)
Cumulative effect of change in
accounting principle		---		---		(0.02)		---
Net loss per share of common stock	$	(0.03)	$	(0.05)	$	(0.36)	$	(0.52)
Cash dividends per share of common stock	$	0.05	$	0.10	$	0.15	$	0.30
Weighted average number of common
shares outstanding :
Basic		10,937,683		10,942,813		10,941,084		10,931,538
Diluted		10,937,683		10,981,569		10,945,119		10,970,763

          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. The risks and uncertainties that may affect the operations, performance, development and results of the Company's business include economic and industry conditions, timing of the recovery within our steel markets, availability and prices of utilities, supplies and raw materials, prices of steel products, foreign and domestic competition, foreign trade polices affecting imports and exports, governmental regulations, interest rates, inflation, labor relations, environmental concerns and compliance issues and others.

          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.

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EX-99

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