Reliance Steel Sales Jump 91% in 2Q Thanks to EMJ Acquisition
Reliance Steel & Aluminum Co., Los Angeles, CA, reported sales up 91% and net income up 105% for the second quarter ended June 30, 2006. Sales were $1.56 billion, and profit reached $100.5 million. The steep jump in sales was in large part due to the acquisitive company's purchase of Earle M. Jorgensen Company on April 3, 2006, for $984 million. Reliance acquired Chapel Steel July 1, 2005, which affects the year-over-year comparisons as well.
For the six months ended June 30, 2006, sales hit $2.5 billion, or a 56% increase, and profit was $172.4 million, up 81% compared with the same period last year.
CEO David H. Hannah said, "Overall, demand for our products during the second quarter was strong, with notable strength ...