Los Angeles-based service center Reliance Steel & Aluminum Co. reported today second quarter 2019 net income of $183.1 million, down 3.7 percent from Q1 and down 6.7 percent from Q2 2018. Net sales in Q2 totaled $2.88 billion, down 2.5 percent from Q1 but up 1.6 percent from Q2 2018.
Total tons sold in the second quarter totaled 1.51 million net tons, compared to 1.50 million nt in Q1 and 1.58 million nt in Q2 2018. Average selling price per ton sold in Q2 2019 was $1,904/nt, compared to $1,958/nt in Q1 and $1,890/nt in Q2 2018.
In a statement, the company said demand for the products and services provided to the aerospace and automotive markets remained strong, and Reliance “maintains its positive outlook in these end markets and continues to invest in growing its capabilities in these areas.”
Demand in the non-residential construction (including infrastructure) and heavy industry sectors remained steady, the company said, while demand in the energy (oil and gas) market softened in the second quarter; Reliance expects to experience a steady slowdown in activity in this market in the near-term.
As for an outlook, the company said that it remains optimistic about business conditions in the third quarter of 2019. The company expects that end demand in the third quarter of 2019 will remain relatively steady, subject to normal seasonal patterns, which include a decline in shipping volume due to customer shutdowns and vacation schedules. As a result, the company estimates tons sold will be down 4 percent to 6 percent in the third quarter of 2019 compared to the second quarter of 2019.
The company also expects that overall metals pricing will generally remain consistent with current levels. However, because metal prices, especially for carbon steel, declined throughout the second quarter of 2019, the company expects its average selling price per ton sold for the third quarter of 2019 will be down 1.5 percent to 2.5 percent compared to the second quarter of 2019.