Los Angeles, California-based Reliance Steel and Aluminum Company, the largest metals service center company in North America, announced Thursday that net income of $92.3 million in Q1 2011 was up 107 percent from Q1 2010 net income of $44.7 million, and 134 percent higher than net income of $39.5 million in Q4 2010.
David H. Hannah, Chairman and CEO of Reliance, said, "Our sales and earnings for the 2011 first quarter were better than we originally expected primarily because pricing for all of our products increased during the quarter more than we had anticipated, which had a positive impact on both our gross profit margins and volume sold."
Sales in Q1 2011 were up 32 percent over Q1 2010 and 21 percent over Q4 2010 at $1.91 billion. Tons sold in Q1 2011 rose 15 percent over Q4 2010 as average prices per ton were up 6 percent. Compared to Q1 2010, tons sold were up 15 percent as average prices per ton rose 18 percent.
Of all Reliance's operating sectors, carbon steel sales by far accounted for the largest portion of total sales, amounting to 53 percent in Q1.
"The markets where we saw the most growth during the quarter were energy, oil and gas; farm and heavy equipment; mining; rail cars; barges; and general manufacturing. Also remaining strong was semiconductor and electronics; aerospace; and our toll processing businesses, which are primarily related to the auto and appliance industries. Demand for our carbon steel structural products, which is driven primarily by non-residential construction activities, remains the weakest; however, we have seen some improvements in demand for those products in certain areas around the country," added Hannah.