WASHINGTON (dpa-AFX) - Reliance Steel & Aluminum Co. (RS) reported a rise in profit for the first quarter to $116.2 million or $1.54 per share from $92.3 million or $1.23 per share a year ago.
On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $1.50 per share. Analysts' estimates typically exclude special items.
Net sales grew to $2.29 billion from $1.91 billion last year. Analysts expected revenues of $2.20 billion.
The recent quarter financial results include in cost of sales a pre-tax LIFO charge, or expense, of $7.5 million, compared with a pre-tax LIFO charge of $20.0 million for the 2011 first quarter. The LIFO adjustments, in effect, reflect cost of sales at current replacement costs.
David Hannah, Chairman and CEO of Reliance said, '...Demand was stronger, especially in January and February, aided in part by a more favorable pricing environment for most of our products. Sales dollars per day in March were down slightly from February due to a drop in tons sold per day, as the direction of carbon steel pricing became a little uncertain and stainless steel surcharges decreased.'
'Once again, the markets that continued to provide the most growth during the quarter were energy (oil and gas), aerospace, farm and heavy equipment, and auto through our toll processing businesses. Semiconductor and general manufacturing also remained strong. We have seen improvements in our non-residential construction related businesses, but it still lags the growth seen in other areas.... Those attributes have helped our operating results to be less volatile than if we had a more narrow range of products sold into fewer industries,' Hannah continued.
The company now estimates earnings per share in a range of $1.40 to $1.50 for the second quarter. Analysts project earnings of $1.53 per share.
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