Reliance Results Impacted by Lower Pricing

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.