EMJ Reports First-Quarter Results.

Business Editors

BREA, Calif.--(BUSINESS WIRE)--July 24, 2001

The Earle M. Jorgensen Co. ("EMJ") today reported earnings for the company's first fiscal quarter ended June 28, 2001.

Revenues for the first quarter of fiscal 2002 decreased 11.1%, to $238.7 million, compared with $268.4 million reported in the fiscal 2001 period.

Operating income for the first quarter of fiscal 2002 decreased 27.2% to $13.4 million (5.6% of revenues), compared with $18.4 million (6.9% of revenues) and net income, after recognizing a non-operating excise tax of $1.9 million imposed under an IRS settlement agreement, decreased to $0.5 million, compared with $7.1 million in the fiscal 2001 period.

Maurice S. Nelson Jr., EMJ's president and chief executive officer, stated, "The challenges we faced during the fourth quarter of fiscal 2001 carried over to the first fiscal quarter of 2002, as weakened demand for most of our core commodities throughout key industry segments we served accelerated due to the continuing deterioration in the economy.

"Tonnage shipped in the first quarter of fiscal 2002 decreased 11% when compared to the first quarter in fiscal 2001. Although gross margins held in the first quarter of fiscal 2002 when compared to the same period in fiscal 2001, operating margins slipped as expected reductions in costs and expenses could not offset the effects of lower volumes.

"However, we are confident we can effectively control our costs and expenses during this downturn while continuing to provide customer service that we believe is unequaled in the industry."

EMJ, with headquarters in Brea, is one of the largest independently owned distributors of metal in the United States with 28 domestic service centers, three Canadian service centers and five processing centers. EMJ inventories more than 30,000 sizes, shapes and grades of bar, sheet, plate, structurals, expanded metals, tubing and pipe in carbon, alloy steel, stainless and specialty aluminum and steel.

This release may contain forward-looking statements relating to future events or financial results. Actual events or results may differ materially subject to risks, uncertainties and other factors over which the company has no control. These factors and additional information are included in the company's reports on file with the Securities and Exchange Commission.

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

First Quarter Ended June          2001              2000

Revenues                        $238,700          $268,400
Operating income                  13,400            18,400
Income before income taxes           800 (a)         7,600
Net income                           500             7,100
EBITDA (b)                        16,700            22,100

(a) This amount is after recognition of a non-operating expense of
    $1.9 million for excise tax imposed under an IRS settlement
    agreement.

(b) EBITDA represents income from operations before net interest
    expense, taxes, depreciation, amortization, LIFO adjustments and
    certain other non-cash expenses, including ESOP and post-retirement
    accruals.