Steel Mills
Reliance Results Impacted by Lower Pricing
Written by Sandy Williams
February 19, 2014
Reliance Steel & Aluminum Company reports fourth quarter 2013 sales for all products were $2.31 billion, up 22.1 percent from $1.89 billion in the fourth quarter of 2012 and down 5.6 percent from $2.44 billion in the third quarter of 2013. Net income for the quarter was $61.8 million, compared to $95.1 million in third quarter 2013 and $80.4 million in Q4 2012.
Tons sold were up 38.7 percent to 1.4 million tons from the fourth quarter of 2012 and down 3.1 percent from the third quarter of 2013. The average selling price per ton sold was $1,645, down 11.4 percent from the fourth quarter of 2012 and down 2.0 percent from the third quarter of 2013.
Carbon steel shipments for the quarter were down 2.6 percent to 1.16 million tons but up 45.5 percent year-over-year due to the acquisition of Metals USA last year. Sales for carbon steel totaled $1.29 billion in the fourth quarter, down 3.3 percent from Q3 and up 36.5 percent from Q4 2012. The average selling price per ton sold dropped 0.7 percent from the previous quarter and 6.2 percent from the previous year.
“During the fourth quarter we experienced a normal seasonal slowdown in demand,” said David H. Hannah, Chairman and CEO of Reliance. “However, the fall-off from the prior quarter was less than typical, supporting a continuation of the general trends we experienced during the second half of the year with overall demand steadily improving.”
Full year results for Reliance saw sales increase 9.3 percent year-over-year to $9.22 billion. Tons sold were up 21.4 percent to 5.38 million tons. Net income dropped 20.3 percent to $321.6 million.
Hannah said the overall decline in pricing in 2013 and the unexpected 2 percent drop in pricing in the fourth quarter reduced profitability for the quarter and the year.
Reliance is not expecting a boom in growth for any end market segment in 2014. However, automotive will continue to be strong with “solid operating results in aerospace, energy (oil and gas), semiconductor/electronics and manufactured goods.” The company is “cautiously optimistic” that non residential construction will pick up in 2014.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AISI: Raw steel production eases to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.
AISI: Raw steel production edges back up
Domestic raw steel production recovered last week, after slipping the week prior, according to the latest American Iron and Steel Institute (AISI) data. Weekly production remains at some of the lowest levels recorded this year.
Cliffs closes its 2024 HR spot book
Cleveland-Cliffs announced the closing of its December order book for hot-rolled coil spot purchases, though it said contract bookings remain available.