Reliance Reports Record Q1
By Metal Center News Staff
on May 3, 2022
Reliance Steel & Aluminum Co., Los Angeles, reported net sales of $4.485 billion in the first quarter, a record for North America’s largest service center company. Sales were 12.5 percent higher than the prior quarter and 58 percent better than the same quarter in 2021.
Net income totaled $523.3 billion, up 24.2 percent compared with fourth-quarter 2021 and 96.1 percent greater than the first quarter of the previous year.
"Outstanding operational execution throughout our Family of Companies in the first quarter led to a continuation of the record results we achieved in 2021 and once again demonstrated the durability and effectiveness of our business model,” said Jim Hoffman, CEO.
“Notwithstanding ongoing macroeconomic challenges, our performance was supported by positive underlying trends including continued strong demand with improving shipment levels in each month of the quarter, along with ongoing strength in metals pricing.”
The company’s tons sold increased 10.7 percent from the prior quarter to 1.4 million, though mostly flat with first-quarter 2020. Same-store tons sold were up 10.3 percent from the fourth quarter and down 2.5 percent from first-quarter 2021. The average selling price of $3,186 per ton was up 57.7 percent from the prior-year first quarter.
“Our results also benefitted from our strategic diversification of products, end markets and geographies, as well as strong ongoing support from our domestic suppliers and valued relationships with our loyal customers,” Hoffman said.
Reliance remains optimistic about business conditions in 2022 with solid underlying demand trends expected to continue across the vast majority of the key end markets it serves. As a result, the company estimates tons sold will be flat to up 2.0 percent in the second quarter. In addition, Reliance expects its average selling price per ton sold for the second quarter of 2022 to be flat to up 2.0 percent compared with the first quarter.