Reliance Steel & Aluminum Co. reported Thursday its financial results for the fourth quarter and full year ended December 31, 2014.
For Q4, sales were $2.58 billion, up 11.7 percent from $2.31 billion in the fourth quarter of 2013 and down 4.7 percent from $2.71 billion in the third quarter of 2014. Net income attributable to Reliance was $92.3 million, up 49.4 percent from $61.8 million in the fourth quarter of 2013 and down 3.4 percent from $95.5 million in the third quarter of 2014.
Tons sold were up 4.4 percent from the fourth quarter of 2013 and down 4.9 percent from the third quarter of 2014, with the average selling price per ton sold up 6.4 percent from the fourth quarter of 2013 and down 0.1 percent from the third quarter of 2014.
For the full year 2014, sales were a record $10.45 billion, up 13.3 percent from $9.22 billion in 2013. Net income attributable to Reliance was $371.5 million, up 15.5 percent from $321.6 million in 2013.
Tons sold for the full year were up 13.0 percent from 2013 and the average selling price per ton sold was up 0.4 percent.
“Demand in the fourth quarter reflected the normal seasonal slowdown caused by fewer shipping days due to the holiday season and holiday-related closures by many of our customers,” said David H. Hannah, Chairman and CEO of Reliance. “However, with the exception of the energy markets, underlying demand momentum in the fourth quarter remained strong. Reliance's sequential quarter 4.9 percent reduction in tons sold was better than the MSCI Industry average decline of 7.6 percent in the quarter. Reliance also significantly outpaced the industry for the full year with a 6.1 percent increase in same store tons sold compared to the MSCI Industry average increase of 4.2 percent. Although metals pricing was generally stronger in 2014 than in 2013, steel pricing was constrained by historically high levels of imports supported, in part, by a strengthening US dollar. This, plus the effects of significant decreases in the price of scrap and other steelmaking raw materials during the 2014 fourth quarter, resulted in falling steel prices that have continued into 2015 and negatively affected our gross profit margins.”