EMJ Posts Record Revenues and Earnings.

BREA, Calif.--(BUSINESS WIRE)--Oct. 14, 1997--After completing its restructuring in March 1997, The Earle M. Jorgensen Company (EMJ) responded with record revenues and earnings for the second fiscal quarter and the initial six-month period of its fiscal 1998.

The company on the strength of generally improving branch performance has put together back-to-back quarters of record revenues and earnings after closing four domestic facilities, selling its Mexico and Coil Processing Operations, and reducing staff by 10%.

Revenues for the six-month period were $519 million, up 2% from the $505 million reported during the corresponding period last year.

The restructuring, improving market share, and a firm economy reversed a historical trend of a "softer" second quarter. This year's second quarter revenues were $259 million, comparable to the first fiscal quarter, and up 5% from the $247 million reported in the second quarter of the previous fiscal year.

Higher revenues, supported by improved gross margins and lower operating expenses enabled the company to achieve operating income of $33 million, or 6.3% of revenues, compared with $23 million during the six-month period last year, a 39% improvement.

Net income rose to $12 million compared with $4 million during the six-month period last year.

EBITDA for the initial six-months was $41 million, or 7.9% of revenues.

The company benefited from expense savings resulting from the March 1997 restructuring. The company has goals for additional profit improvement through a re-engineering project which is focused on changing or improving operating processes, and improving gross margin.

In the initial six-months, EMJ received approximately $6 million of cash flow from the sale of excess properties, and its Mexico and Coil Processing Operations.

The company has targeted a total of $26 million of cash flow during this fiscal year from the sale of excess properties and foreign operations.

The company has offered its United Kingdom operations for sale and is actively seeking a buyer who is capable of providing strong strategic support to service EMJ's European customer base.

The company has no intention to close or sell any other operations. EMJ has strategically sized and reorganized its facilities to continue to provide high quality service to its domestic markets, and will support its international customers with the same quality and service as its domestic customers.

EMJ, with headquarters in Brea, is one of the largest independently owned distributors of metal in the United States. EMJ inventories more than 40,000 sizes, shapes and grades of bar, sheet, plate, structurals, expanded metals, tubing and pipe in carbon, alloy steel, stainless and specialty aluminum and steel. -0-

                   The Earle M. Jorgensen Company
                       Financial Highlights
                          (in $000's)


Six-Months Ended September:           Fiscal 1998     Fiscal 1997

Revenues                                $519,400        $505,400

Operating Income                          32,800          23,500

Income before taxes                       12,300           3,800

Net Income                                11,800           3,600


Second Quarter Ended September:

Revenues                                $259,500        $247,000

Operating Income                          16,700           7,900

Income (loss) before taxes                 6,200          (2,000)

Net Income (loss)                          6,200          (2,100)

CONTACT: EMJ

Charles P. Gallopo, 714/579-8823

Fax: [phone]