logo
Plus   Neg
Share
Email

Reliance Steel Q4 Profit Rises - Update

Metal processor Reliance Steel & Aluminum Co. (RS), Thursday reported an 18 percent increase in fourth-quarter profit, as lower costs helped offset a drop in sales. The company's earnings for the quarter came in ahead of estimates, but revenues fell short of consensus.

Los Angeles, California-based Reliance's fourth-quarter profit rose to $80.4 million or $1.06 per share from $67.9 million or $0.91 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.97 per share for the quarter. Analysts' estimates typically exclude special items.

Fourth-quarter's cost of sales include a pre-tax LIFO credit, or income, of $37.1 million, compared to a pre-tax LIFO charge, or expense, of $17.8 million last year.

Reliance's sales dropped 7.1 percent to $1.89 billion from $2.03 billion last year, due to declines in volume and price. Ten analysts had a consensus revenue estimate of $1.94 billion for the quarter.

Reliance sold 1.01 million tons for the quarter, down 3.9 percent from last year, while average price per ton sold dropped 4.2 percent to $1,847.

Commenting on the results, Chief Executive David Hannah said, "Our fourth quarter results reflect the impact of continued global economic uncertainty on our industry coupled with normal seasonal trends including fewer shipping days as a result of the holiday season and extended holiday-related closures by various customers."

Moving ahead, the company said it expects global economic and political uncertainty to continue to negatively impact the industry in the first quarter, pressuring both demand and pricing.

For the first quarter, the company expects earnings of $1.05 to $1.15 per share. Analysts currently estimate earnings of $1.39 per share for the first quarter.

Early this month, Reliance announced that it will acquire Metals USA Holdings Corp. (MUSA) for about $1.2 billion, its largest deal to date. The transaction is expected to close during the second quarter.

RS is currently trading at $67.87, down $0.26 or 0.38%, on the NYSE.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Each year, more than eight million children die from preventable diseases in countries with the worst health care systems . Kofi Annan, former head of the UN, said that, "Almost all these deaths will happen in developing countries. A large number of them could be prevented." You do not want to find... As Canada prepares to legalize marijuana nationwide later this year, a national survey by Statistics Canada has thrown up some interesting facts - including that legal marijuana is not a temptation for most Canadians. Regardless of cannabis use, 79 percent of Canadians surveyed said they would not be more likely to try or increase their cannabis consumption just because it is legalized. The Procter & Gamble Company (PG) reported third-quarter net earnings per share of $0.95, an increase of two percent versus the prior year. Net earnings from continuing operations declined 1% year-over-year to $2.54 billion. Core earnings per share increased four percent to $1.00. On average, 20 analysts...
Follow RTT