Reliance Steel & Aluminum reported Thursday that for Q4 2013, sales were $2.31 billion, up 22.1 percent from $1.89 billion in the fourth quarter of 2012 and down 5.6 percent from $2.44 billion in the third quarter of 2013. Tons sold were up 38.7 percent from the fourth quarter of 2012 and down 3.1 percent from the third quarter of 2013, with the average selling price per ton sold down 11.4 percent from the fourth quarter of 2012 and down 2.0 percent from the third quarter of 2013. Net income attributable to Reliance was $61.8 million, down 23.1 percent from $80.4 million in the fourth quarter of 2012 and down 35.0 percent from $95.1 million in the third quarter of 2013.
For full year 2013, sales were $9.22 billion, up 9.3 percent from $8.44 billion in 2012. Tons sold were up 21.4 percent from 2012 and the average selling price per ton sold was down 10.0 percent. Net income attributable to Reliance was $321.6 million, down 20.3 percent from $403.5 million in 2012.
“During the fourth quarter we experienced a normal seasonal slowdown in demand,” said David H. Hannah, Chairman and CEO of Reliance. “However, the fall-off from the prior quarter was less than typical, supporting a continuation of the general trends we experienced during the second half of the year with overall demand steadily improving. Unfortunately, pricing for our products declined 10.0 percent in 2013 over 2012 levels, including an unexpected 2.0 percent drop in the fourth quarter as compared to the prior quarter, significantly reducing our overall profitability in both the fourth quarter and the year. Despite the soft pricing environment, strong performance by our managers in the field resulted in FIFO gross profit margins holding steady and helped to somewhat mitigate the impact on our profitability.”
Mr. Hannah continued, “While market conditions created challenges for our industry throughout 2013, Reliance generated full year net sales growth of 9.3 percent and tons sold were up 21.4 percent driven primarily by M&A activity. During 2013, we completed two acquisitions, highlighted by the Metals USA transaction that closed in the second quarter. We believe we are the acquirer of choice in our industry as evidenced by our proven, well-executed acquisition strategy that continues to enhance the overall performance of our acquired companies. Our strong cash flow from operations in 2013 of $633.3 million allowed us to reduce our debt from the levels reached after funding our $1.25 billion acquisition of Metals USA, resulting in ample liquidity for continued growth. Going forward, we expect to continue to selectively pursue acquisition opportunities that fit within our strategy for profitable growth.”