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Reliance Steel & Aluminum Sales, Profit Grow in 2Q
July 17, 2008
Reliance Steel &Aluminum Co., Los Angeles, CA, reported sales in the second quarter 2008 were $2.1 billion, an increase of 10.5% over the same period in 2007. Profit increased 27.5% to $156.6 million.
For the first six months ended June 30, 2008, sales were $4 billion, and increase of 7.1% over the prior-year period. Profits increased 12.6% to $264 million.
David H. Hannah, CEO of Reliance said: The main reason for the increased earnings was higher carbon steel prices, which resulted in higher gross profit margins as we quickly passed through the increases to our customers. While we expected carbon steel pricing to continue upwards during the second quarter, the increases were larger than we had anticipated."
In the third quarter, Hannah expects pricing to be "slightly above"second quarter levels. Demand is expected to decrease slightly on a normal seasonal softening of the market.
Reliance is a metals service center company with a network of more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the United Kingdom. The company distributes a full line of over 100,000 metal products to more than 125,000 customers in various industries.