Reliance announces increase in profits despite revenue decline

Los Angeles, California-based Reliance Steel & Aluminum announced an increase in profits for the 2009 fourth quarter in comparison to the same quarter of 2008. Lower operating expenses were cited for the increase, despite a 41 percent decline in revenue.

The company listed 2009 Q4 profits at $92.1 million, a 39 percent year-on-year increase from 2008 Q4. Sales, however, declined 41 percent year-on-year, from $2.14 billion in Q4 2008 down to $1.27 billion in the same quarter of 2009. Additionally, Reliance cut the cost of sales in half, from $1.68 billion in Q4 2008 to $867.52 million in Q4 2009.

For the full year 2009, profit decreased to $148.2 million, a 30.5 percent year-on-year decrease. Full-year sales were reported at $5.32 billion, a 39 percent year-on-year decline. Carbon steel sales made up 56 percent of total revenues.

Reliance Chairman and CEO David H. Hannah anticipates that overall demand will recover slowly as the year progresses, and he expects pricing to stay at or near current levels through the first quarter of 2010.