On February 17, California, US-based Reliance Steel & Aluminum Co., reported its financial results for the quarter and year ended December 31, 2010.
For the fourth quarter, Reliance reported net income of $39.5 million, compared to 2009 fourth quarter net income of $92.1 million, and net income of $48.7 million for the 2010 third quarter. Earnings per diluted share were $53 in the 2010 fourth quarter, compared with 2009 fourth quarter earnings per diluted share of $1.25 and $65 for the 2010 third quarter. Sales for the 2010 fourth quarter were $1.58 billion, up 24 percent from 2009 fourth quarter sales of $1.27 billion, and down four percent from 2010 third quarter sales of $1.65 billion.
For 2010, net income was $194.4 million, up 31 percent from net income of $148.2 million for 2009. Earnings per diluted share were $2.61 for 2010, up 30 percent from earnings per diluted share of $2.01 for 2009. Sales for 2010 were $6.31 billion, up 19 percent from 2009 sales of $5.32 billion. Reliance's tons sold for 2010 were up six percent and the average price per ton sold was up 12 percent compared to 2009.
David H. Hannah, chairman and CEO of Reliance, said, "Our guidance for the 2010 fourth quarter did not anticipate the carbon steel price increases that were announced by the carbon steel producers consistently throughout December. Demand during the quarter was seasonably lower than the 2010 third quarter, but not by as much as we expected, as some customers purchased a little more during December to get ahead of further price increases. As a result, we sold a little more steel at generally higher prices and margins that resulted in the quarter finishing up better than we originally expected."