The 2020 Mid-Year Economic Update_long

Reliance 1Q Profit Soars 55%; Sales Up 22%

href=”http://www.rsac.com” target=_blank>Reliance Steel & Aluminum Co., Los Angeles,
CA, reported its profit for the first quarter 2006 was up 55% to $71.9 million.
This compares with net income of $46.4 million for the 2005 first quarter.


2006 first quarter
sales were a record $988 million, an increase of 22% compared with 2005 first
quarter sales of $811.9 million.


David H. Hannah, Chief Executive Officer of Reliance, said,
“Strong customer demand resulting in increased volumes of metals sold was the
key driver of our first quarter performance. Overall, volume was up 27% compared
to the 2005 first quarter, and up 12% from the 2005 fourth quarter. The various
end-market industries where we sell our products are still doing quite well,
with strength in the aerospace and non-residential construction markets leading
the way.”


On April 3, 2006, Reliance completed the previously
announced target=_blank>acquisition of Earle M. Jorgensen Company. The transaction was
valued at about $984 million, including the assumption of EMJ’s net debt, with a
per share consideration of $14.21 based on the average closing price of Reliance
common stock of $86.43 for the 20-day period ending on the second trading day
prior to the closing.


For more details on Reliance’s 1Q earnings, click href=”http://home.businesswire.com/portal/site/home/?epi_menuItemID=1cd823fd3a51cf8869a8cccae6908a0c& epi_menuID=c791260db682611740b28e347a808a0c& epi_baseMenuID=384979e8cc48c441ef0130f5c6908a0c& vnsId=750″
target=_blank>here
.


Related
Stories:
target=_blank>Reliance Steel Subsidiary Agrees to Acquire Flat Rock Metal
Processing

href=”/pub/1_1/breaking-news/3019-1.html”
target=_blank>Reliance 2005 Sales Up 14%

href=”/pub/1_1/breaking-news/2971-1.html”
target=_blank>Reliance to Buy Earle M. Jorgensen Company


face=Arial>target=_blank>Metals Distribution Consolidates (Subscription Required)

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