Synalloy Corporation announces for the third quarter of 2009 net earnings from continuing operations of USD 281,000 on sales of USD 25,712,000 as compared to net earnings from continuing operations of USD 1,261,000 on sales of USD 38,868,000 in third quarter of 2008.

The company produced net earnings from continuing operations of USD 362,000 on sales of USD 77,797,000 in the first 9 months of 2009 as compared to net earnings from continuing operations of USD 6,381,000 on sales of USD 130,612,000 in the first 9 months of 2008.

It recorded net earnings from discontinued operations of USD 186,000 and USD 140,000 for the third quarter and first nine months of 2009, respectively as compared to a net loss from discontinued operations of USD 19,000 and net earnings of USD 115,000 for the same periods last year.

Metals Segment
Sales in the Metals Segment declined 42% and 48% for the third quarter and first nine months of 2009, respectively, from the same periods a year earlier, resulting from 40% and 32% decreases in average selling prices combined with 6% and 12% declines in unit volumes compared to the same periods of 2008. Sales of commodity pipe accounted for the declines as they were down 54% and 47% in the quarter and first nine months. Average selling prices of commodity pipe decreased 45% and 44% and unit volumes were down 17% and 6% in the quarter and first nine months, respectively, compared to the same periods of 2008.

Specialty Chemicals Segment
Sales in the Specialty Chemicals Segment, which is composed solely of Manufacturers Chemicals, LLC as a result of the discontinued operations discussed below, decreased 9% and 10% for the third quarter and first nine months of 2009, respectively, from the same periods last year, as adjusted for discontinued operations. However, operating income increased 29% and 11% for the third quarter and first nine months of 2009, respectively, from the same periods last year. During 2009, the increases in raw material and energy costs have abated and in some cases have actually declined. Although Management has had to lower selling prices, price levels have remained at levels allowing the Segment to maintain a higher level of profitability as compared to last year.