Earnings fall sequentially for Reliance Steel, but still up year-on-year

Friday, 26 October 2012 01:56:31 (GMT+3)   |  
       

Los Angeles, California-based Reliance Steel & Aluminum reported Thursday sales of $2.06 billion in Q3, down 3.9 percent from $2.14 billion in Q3 2011 and down 7 percent from Q2 2012. Tons sold also fell year-on-year, but increased 3.5 percent from Q2 2012. Earnings for the quarter totaled $98.1 million, up 15.5 percent from $84.9 million in Q3 2011 and down 9.8 percent from $108.8 million in Q2 2012.

Tons sold for carbon steel products fell 3.7 percent from Q2 to Q3 to 887,000, but increased 1.3 percent from Q3 2011. Average selling prices, however, fell 4.7 percent from Q2 and 8.2 percent from Q3 2011.

Reliance said that it expects that global economic uncertainty will continue to impact the industry in Q4. In addition, fewer shipping days because of the holidays and extended holiday-related closures at certain customers will lower tons sold in Q4 as compared to the 2012 third quarter, which is a normal seasonal trend. Carbon steel prices are still fragile and for Q4 (ending December 31, 2012), management currently expects earnings per diluted share to be in the range of $.90 to $1.00. Earnings per share were $1.30 in Q3.


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