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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.   20549

FORM 10-Q

(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2003

OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                            to                                           

Commission file number 0-2389

ROANOKE ELECTRIC STEEL CORPORATION
(Exact name of Registrant as specified in its charter)
                    Virginia                  
(State or other jurisdiction of
   incorporation or organization)		       54-0585263      
(I.R.S. Employer
   Identification No.)		  

  102 Westside Blvd., N.W., Roanoke, Virginia
(Address of principal executive offices)		      24017     
(Zip Code)		  

                               (540) 342-1831                               
(Registrant's telephone number, including area code )

                                             N/A                                             
(Former name, former address and former fiscal year, if
changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

Yes    x    No        

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes    x    No        

Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of July 31, 2003.

10,932,813 Shares outstanding

ROANOKE ELECTRIC STEEL CORPORATION

FORM 10-Q

CONTENTS

         Page   
1. Part I
-
 Financial Information   3 - 18
Item 1.
   Financial Statements  
   
a.
   Consolidated Balance Sheets   3
b.
   Consolidated Statements of Loss   4
c.
   Consolidated Statements of Cash Flows   5
d.
   Notes to Consolidated Financial Statements   6 - 11
e.
   Independent Accountants' Review Report   12
   
   
Item 2.
   Management's Discussion and Analysis of Financial Condition  
       and Results of Operations   13 - 16
   
Item 3.
   Quantitative and Qualitative Disclosures About Market Risk   17
   
Item 4.
   Controls and Procedures   18
   
2. Part II
-
 Other Information   19
Item 1.
   Legal Proceedings   19
Item 6.
   Exhibits and Reports on Form 8-K   19
   
   
3. Signatures   20
   
   
4. Exhibit Index pursuant to Regulation S-K   21
   
   
5. Exhibits   22 - 26

PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
ROANOKE ELECTRIC STEEL CORPORATION
 
Consolidated Balance Sheets
ASSETS
      (Unaudited)      
      July 31,     October 31,
      2003     2002
CURRENT ASSETS  
 
    Cash and cash equivalents   $ 11,410,895   $ 12,051,362
    Investments     3,475,441     14,104,019
    Accounts receivable, net of allowances of            
      $3,907,505 in 2003 and $1,863,746 in 2002    43,865,986     40,301,324
    Refundable income taxes     2,198,531     4,178,418
    Inventories     57,213,053     62,362,602
    Prepaid expenses     1,962,204     1,118,692
    Deferred income taxes     4,330,671
    4,330,671
          Total current assets     124,456,781
    138,447,088
PROPERTY, PLANT AND EQUIPMENT            
    Land     7,977,522     7,977,522
    Buildings     45,126,239     44,466,848
    Manufacturing machinery and equipment     138,528,013     137,910,429
    Trucks and forklifts     7,266,833     7,272,660
    Fabricating plant equipment     19,653,570     18,513,052
    Land improvements     8,968,315     8,656,589
    Office equipment     2,740,068     2,622,910
    Assets under construction     1,161,018
    2,023,915
          Total     231,421,578     229,443,925
    Less--accumulated depreciation     104,621,276
    93,518,440
          Property, plant and equipment, net     126,800,302
    135,925,485
GOODWILL     13,868,647
    13,868,647
OTHER ASSETS     2,265,729
    1,476,353
TOTAL ASSETS   $ 267,391,459
  $ 289,717,573
            
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES            
    Current portion of long-term debt   $ 7,542,278   $ 15,042,755
    Accounts payable     19,829,706     16,892,695
    Dividends payable     546,640     547,141
    Employees' taxes withheld     419,943     329,926
    Accrued profit sharing contribution     261,988     604,723
    Accrued wages and expenses     10,157,683
    10,354,029
          Total current liabilities     38,758,238
    43,771,269
LONG-TERM DEBT            
    Notes payable     75,053,287     93,835,033
    Less--current portion     7,542,278
    15,042,755
          Total long-term debt     67,511,009
    78,792,278
DEFERRED INCOME TAXES     29,840,860
    30,481,620
OTHER LIABILITIES     5,539,045
    5,683,708
STOCKHOLDERS' EQUITY            
    Common stock--no par value--authorized        
      20,000,000 shares, issued 12,205,927 shares        
      in 2003 and 12,215,927 in 2002 4,394,889     4,394,889
    Retained earnings     123,082,810     128,719,560
    Accumulated other comprehensive loss    (917,524)
    (1,307,883)
          Total     126,560,175     131,806,566
    Less--treasury stock, 1,273,114 shares        
      -- at cost 817,868
    817,868
          Total stockholders' equity    125,742,307
    130,988,698
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 267,391,459
  $ 289,717,573
       
The accompanying notes to consolidated financial statements are an integral part of these statements.

ROANOKE ELECTRIC STEEL CORPORATION
 
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
 
 
The accompanying notes to consolidated financial statements are an integral part of these statements.

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ROANOKE ELECTRIC STEEL CORPORATION
 
Consolidated Statements of Cash Flows
 
  (Unaudited)
  Nine Months Ended
  July 31,
  2003
  2002
CASH FLOWS FROM OPERATING ACTIVITIES         
Net loss $ (3,925,688)   $ (5,693,523)
Adjustments to reconcile net loss to net         
  cash provided by operating activities:         
    Cumulative effect of change in accounting principle,        
      net of tax 228,410       ---
    Deferred compensation liability  28,897     (17,001)
    Postretirement liabilities  229,274     151,606
    Landfill closure obligation  23,525      ---
    Depreciation and amortization  11,889,582     12,809,778
    (Gain) loss on sale of investments and property,        
      plant and equipment 96,939     (10,138)
    Deferred income taxes  (901,000)     (482,000)
    Changes in assets and liabilities which provided         
      (used) cash, exclusive of changes shown separately  5,209,209
    6,475,847
Net cash provided by operating activities  12,879,148
    13,234,569
           
CASH FLOWS FROM INVESTING ACTIVITIES         
    Expenditures for property, plant and equipment  (1,874,315)     (1,678,397)
    Proceeds from sale of property, plant and equipment  7,440     51,515
    (Purchase) sale of investments  10,525,106     (432,087)
    Other   (739,276)
    18,005
Net cash provided by (used in) investing activities  7,918,955
    (2,040,964)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
    Cash dividends   (1,640,922)     (3,279,781)
    Increase (decrease) in dividends payable  (501)     3,125
    Proceeds from exercise of common stock options    ---     328,124
    Repurchase of common stock  (70,140)        ---
    Payment of funded debt  (18,781,746)     (15,029,319)
    Loan costs  (285,000)     (316,474)
    Interest rate swap termination fee  (660,261)
    (500,650)
Net cash used in financing activities  (21,438,570)
    (18,794,975)
           
NET DECREASE IN CASH AND CASH EQUIVALENTS  (640,467)
 		     (7,601,370)
 
           
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD  12,051,362
    26,106,683
           
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 11,410,895
  $ 18,505,313
           
CHANGES IN ASSETS AND LIABILITIES WHICH PROVIDED          
  (USED) CASH, EXCLUSIVE OF CHANGES SHOWN SEPARATELY         
    (Increase) decrease in accounts receivable $ (3,564,662)   $