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 in aerospace, energy, and nonresidential construction. Pricing on all of our products trended upward throughout the quarter.”
On July 11, 2006, Reliance announced that it had reached an agreement to acquire Yarde Metals, Inc., a metals service center company headquartered in Southington, CT. Yarde was founded in 1976 and specializes in the processing and distribution of stainless steel and aluminum plate, rod and bar products. Yarde has additional metals service centers in Pelham, NH; East Hanover, NJ; Hauppauge, NY; High Point, NC; Streetsboro, OH; and Limerick, PA and a sales office in Ft. Lauderdale, FL. Yarde’s net sales for the fiscal year ended June 30, 2006, were approximately $385 million.
Reliance Steel & Aluminum Co. is a metals service center companies in the U.S. Through a network of more than 150 locations in 37 states and Belgium, Canada, China and South Korea, the company provides value-added metals processing services and distributes a full line of more than 90,000 metal products. These products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 95,000 customers in various industries.
Reliance 1Q Profit Soars 55%; Sales Up 22%
Metals Distribution Consolidates
Reliance Steel Subsidiary Agrees to Acquire Flat Rock Metal Processing
More Breaking News