Los Angeles, California-based Reliance Steel & Aluminum Company, the largest metals service center in North America, reported Thursday Q3 net income of $84.9 million, a 74 percent jump from Q3 2010, but a 14 percent decline from the $98.7 million Reliance earned in Q2 2011. Total sales for Reliance rose 4 percent from Q2 but increased 29 percent from Q3 2010.
David H. Hannah, Chairman and CEO of Reliance said that during Q3 2011, the company saw better demand from its customers than anticipated but there "was significant downward pressure on pricing and margins, especially during July and August as mill prices for most all of the products we sell were declining." Moving forward, Reliance expects that prices will remain volatile throughout Q4, "with a downward bias, resulting in overall slightly lower prices for our products."
Reliance also anticipates lower sales in Q4 because of fewer shipping days in the quarter, and thus expects earnings to be about $0.70 to $0.80 per diluted share for Q4 2011, a major decline for Q3 earnings per share of $1.13.