Los Angeles, California-based metals service center Reliance Steel & Aluminum reported Thursday net income of $98.7 million in Q2, a 60 percent jump from Q2 2010 net income of $61.5 million, and a more modest 7 percent increase from $92.3 million in Q1 2011. Reliance's net income for the first six months of 2011was $191 million, reflecting an increase of 80 percent over 2010.
Tonnage sold was up as well, rising 10 percent over Q2 2010, and 1 percent compared to Q1. Selling prices saw a more dramatic upswing in the quarter; average prices per tons sold in Q2 2011 were up 16 percent over Q2 2010 and saw a 6 percent increase compared to Q1.
Tonnage and sales volume's both increased despite market softening, particularly in the flat-rolled sector, during Q2. David H. Hannah, Chairman and CEO of Reliance said, "Sales volume and average pricing held up reasonably well given that mill prices for most of the metals we sell declined as the quarter progressed, which also caused our gross profit margins to contract a bit, as we expected." Hannah was confident, however, nothing that, "prices for most of our metal products have softened from the recent highs early in the 2011 second quarter, and may decrease a little more during the 2011 third quarter, but not to the extent that we are overly concerned."