Reliance Steel & Aluminum Co. expects only slight
improvements in demand and generally flat pricing in the third
quarter due to global economic uncertainty, the company said in
its second-quarter earnings report.
The Los Angeles-based
distributor posted net income of $81 million for the three
months ended June 30, down 25.6 percent from $108.8 million in
the same period last year despite a 10.8-percent increase in
sales to nearly $2.45 billion. First-half net income of $164.7
million was down 26.8 percent from $225 million a year earlier
on sales that slipped 0.5 percent to $4.47 billion.
steel sales volume increased 27.1 percent in the second quarter
to 1.17 million tons, aluminum sales were up 22.3 percent from
a year earlier to 76,200 tons and stainless steel sales rose
20.5 percent to 72,400 tons. The company completed its
$1.25-billion acquisition of Metal USA Holdings Corp. during
However, prices were
down across the board, with carbon steel falling 10.5 percent
compared with the second quarter of last year, aluminum was
down 7 percent and stainless steel was 14 percent lower.
Reliance said that the
automotive market remains a bright spot and it expects modest
growth in the oil and gas, heavy industry and aerospace
markets, although pricing in the oil and gas sector is expected
to be pressured by excess capacity.
market is undergoing a slow but steady recovery, which is
expected to continue, the company said.