The 2020 Mid-Year Economic Update_long

Reliance Steel Sees Sales Gain in 3Q

Reliance Steel &Aluminum Co., Los Angeles, CA, reported sales of $2.57 billion in the third quarter 2008, an increase of 42% from the year-ago period. Profit was $152.5 million, up 63%.
 
Reliance's recent PNA Group acquisition is included in the results.
 
For the nine months ended Sept. 30, 2008, profit was $416.5 million, up 27%, and sales were $6.58 billion, up 18%.
 
The 2008 third quarter was reasonably strong from both a demand and pricing perspective, especially in July and August," said David Hannah, CEO. "During September we began to see some softening in prices and volume. However, this slowdown was more than offset by our PNA Group acquisition on Aug. 1, which was accretive to our third quarter results.
 
"Overall, through the first ...

Reliance Steel &Aluminum Co., Los Angeles, CA, reported sales of $2.57 billion in the third quarter 2008, an increase of 42% from the year-ago period. Profit was $152.5 million, up 63%.
 
Reliance’s recent PNA Group acquisition is included in the results.
 
For the nine months ended Sept. 30, 2008, profit was $416.5 million, up 27%, and sales were $6.58 billion, up 18%.
 
The 2008 third quarter was reasonably strong from both a demand and pricing perspective, especially in July and August,” said David Hannah, CEO. “During September we began to see some softening in prices and volume. However, this slowdown was more than offset by our PNA Group acquisition on Aug. 1, which was accretive to our third quarter results.
 
“Overall, through the first nine months of 2008, demand has not been quite as good as the last couple of years, but we have still been able to post record results.”
 
Hannah expects the business climate to “become more difficult” over the next couple of quarters. “The 2001 to 2003 period was much more difficult for our industry than it is currently,” he said. “We successfully managed through that period and we expect to do so again. Currently we have not seen a significant decrease in the amount of business activity, contrary to what you may be hearing and reading. However, because of the uncertainty regarding the economy going forward, which is complicated even further by the currently unknown impact on the industrial economy of the troubled credit market, we are not comfortable providing 2008 fourth quarter earnings per share guidance at this time.

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