Reliance net jumps; flat shipments a concern

Jul 24, 2014 | 05:43 PM | Nat Rudarakanchana

Tags  Reliance Steel & Aluminum, earnings report, steel, aluminum, stainless, alloys, metal service center, MSCI David Hannah

NEW YORK — Reliance Steel & Aluminum Co.’s earnings jumped in the second quarter, but flat shipments vs. the first quarter sparked some concern from analysts.

Bank of America Merrill Lynch analyst Timna Tanners questioned whether the company’s disappointing shipping volumes—which rose just 0.5 percent from first-quarter levels—implied Reliance lost market share, partly because overall industry shipments increased well above that rate, according to Metals Service Center Institute (MSCI) data.

Credit Suisse Group analyst Gayle B. Podurgiel asked whether lingering weather-related problems from the first quarter had delayed Reliance’s carbon steel shipments in the most recent quarter.

Shipments by U.S. steel and aluminum service centers totaled a combined 11.66 million tons in the second quarter, up 5.1 percent from just under 11.1 million tons in the first three months of the year, the MSCI data show.....

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