Abstract: A furnace system is described having a rotatable table with five stations, a loading station, a preheating station, a heating station, a cooling station and an unloading station. A furnace having three compartments, a preheating compartment, a heating compartment and a cooling compartment is vertically movable so that a steel charge to be annealed located on the rotatable table may be moved from one station to another when the furnace is lifted out of contact with the table. Air ducts are provided to transfer heated air from the cooling station to the preheating station. The system is very efficient for, when one charge is cooling a succeeding charge is being heated while the next succeeding charge is being preheated. At the same time a charge can be loaded and another charge can be unloaded. Thus, five steps of an annealing cycle can be accomplished simultaneously allowing an annealed charge to be completely cycled during each step.