EMJ Reports Third Quarter and Nine Months Results.

BREA, Calif.--(BUSINESS WIRE)--Jan. 22, 1999--Earle M. Jorgensen Co. ("EMJ") Friday reported its fiscal 1999 third quarter and nine months results for the period ended Dec. 31, 1998.

Revenues for the third quarter and nine months of fiscal 1999 were $211.2 million and $687.8 million, respectively. During the comparable periods of the prior year, revenues were $256.0 million and $775.5 million, respectively, including revenues of $6.3 million and $21.1 million, respectively, from the company's United Kingdom and Mexican subsidiaries that were sold in fiscal 1998.

Operating income for the third quarter and nine months of fiscal 1999 was $12.2 million (5.8 percent of revenues) and $43.9 million (6.4 percent of revenues), respectively. During the comparable periods of the prior year, operating income was $14.9 million (5.8 percent of revenues) and $47.7 million (6.2 percent of revenues), respectively. Operating income from the company's United Kingdom and Mexico subsidiaries that were sold in fiscal 1998 were not material to the results for such period.

Maurice S. Nelson Jr., EMJ's chief executive officer and president, noted that the fiscal 1999 third quarter and nine months results were in line with company expectations. Nelson also noted that the company's sales were adversely affected by continuing weakness in significant industries that it serves such as agricultural equipment, oil services and aerospace, which have suffered from global economic uncertainty caused in part by the Asian crisis.

Nelson said he was encouraged with the company's ability to maintain its profit margins during this period, attributing that success to the company's commitment to its reengineering and cost reduction programs.

EMJ, with headquarters in Brea, is one of the largest independently owned distributors of metal in the United States with 23 domestic service centers, two Canadian service centers, and five processing centers. 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)

Third Quarter Ended                   Fiscal                Fiscal
Dec. 31:                               1999                  1998

 Revenues                             $211,241              $256,049
 Operating Income                       12,150                14,907
 Income before taxes                     1,569                 4,927
 Net Income                              1,433                 4,254

Nine Months Ended
Dec. 31:

 Revenues                             $687,784              $775,483
 Operating Income                       43,886                47,713
 Income before taxes                    12,996                17,224
 Net Income                             12,151                16,051