Aug. 7, 2014
Reliance Hits Sales Record
Reliance Steel & Aluminum Co., Los Angeles, reported record net sales of $2.62 billion in the second quarter, an improvement of 6.9 percent from the same period last year and up 2.5 percent from the first quarter. Net income totaled $96.5 million, up 19.1 percent from second-quarter 2013 and 10.7 percent from the first quarter.
"The overall pricing environment continued to improve during the second quarter as evidenced by a 1.8 percent increase in our average selling price per ton sold, driven by strength in most major commodity types, most notably stainless steel products," said David H. Hannah, chairman and CEO. "Carbon steel pricing, except for plate products, lost a little momentum late in the quarter but still remained higher than in the previous quarter. While overall pricing has increased sequentially for two quarters in a row for the first time since 2011, our average selling price per ton sold for the first six months of 2014 is still 4.5 percent lower than in the same period of last year."
Reliance's tons sold increased 8.2 percent from the second quarter and 0.5 percent from the previous quarter. The average selling price per ton sold was down 0.9 percent from second-quarter 2013, but up 1.8 percent from the prior quarter.
Reliance executives were a little surprised at the mostly flat shipment numbers compared to the first quarter, particularly given general industry trends toward higher volumes. Some of the difference could be explained by the fact that carbon steel represents a lower percentage of Reliance shipments than for others in the industry.
As the U.S. economy maintains its slow but steady recovery, Reliance expects demand to continue to improve in the third quarter at a slightly higher rate than in the second quarter, and pricing to remain relatively stable with current levels.