Earnings climb 77 percent for Reliance Steel in 2011 amid higher prices

Friday, 17 February 2012 02:12:47 (GMT+3)   |  
       

Los Angeles, California-based metals service center Reliance Steel & Aluminum reported Thursday that in Q4 2011 (ended December 31, 2011), net income increased 72 percent year-on-year to $67.9 million but fell 20 percent from the $84.9 million earned in Q3 2011. Q4 earnings were boosted by increased sales, which were up 28 percent over 2010 to $2.03 billion.

For the year full 2011 year, net income amounted to $343.8 million, up 77 percent from the $194.4 million for the 2010 year. Sales for the 2011 year were $8.13 billion, up 29 percent compared with the 2010 year of $6.31 billion.

Reliance's tons sold in 2011 were up 13 percent from 2010 and the average price per ton sold in 2011 was up 15 percent compared to 2010. Carbon steel sales were 53 percent of net sales in 2011.

David, H. Hannah, Reliance's Chairman and CEO was pleased with the results, and noted that tons sold in the final two months of 2011 were stronger than anticipated in a solid Q4 demand environment. As for demand sectors, industries in which Reliance experienced more significant improvement over 2010 were energy (oil and gas), agriculture, and mining.

"Currently, the prices of most of the metals we sell are increasing over the fourth quarter levels, and we expect pricing, overall, to remain relatively strong through the 2012 first quarter. Additionally, we anticipate demand to continue to improve slowly but steadily, except for the energy (oil & gas), aerospace, heavy equipment (farm and mining), and auto industries where we look for higher than average growth," added Hannah.


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