Reliance Steel & Aluminum Co. reported Friday its financial results for the third quarter ended September 30, 2013, indicating sales of $2.44 billion, which reflect an 18.9 percent increase year-on-year, but a 0.2 percent decrease from Q2 2013.
However, Reliance’s net income totaled $95.1 million in Q3 2013, down 3.1 percent from the same quarter last year but up 17.4 percent from Q2 2013.
"Overall demand in the third quarter was a bit better than anticipated with third quarter tons sold up 2.0 percent compared to the prior quarter," said David H. Hannah, Chairman and CEO of Reliance. "Although a significant portion of the increase was due to an additional two weeks of Metals USA activity in the third quarter, our same-store tons sold were up 0.4 percent. The normal seasonal trend is for third quarter demand to be down from second quarter; however, our 2013 second quarter demand was lower than expected. Metals pricing, on the other hand, was weaker than we had expected, with our average selling price per ton sold down 2.3 percent from the prior quarter, and down 9.5 percent compared to the third quarter last year. Despite the persistently soft pricing environment, which weighs heavily on our net sales and profitability, the strong operational execution by our managers in the field partially offset the pricing impact as demonstrated by Reliance's increase in gross profit margin."
Mr. Hannah continued, "We continue to profitably grow through successful M&A activity to supplement organic growth. Including acquisitions that were completed in 2012 and 2013, third quarter consolidated net sales were up 18.9 percent and tons sold were up 31.3 percent compared to the same period last year. This solid growth was driven primarily by the acquisition of Metals USA, which was completed early in the second quarter this year and has been accretive to our earnings. We are very pleased with the Metals USA integration progress and our ability to grow despite economic and cyclical challenges."
