March 1, 2017

Reliance Earns $304 Million in Off Year

Reliance Steel & Aluminum Co., Los Angeles, reported net income of $304.3 million in 2016, a 2.3 percent decline from the previous year. North America’s largest service center company reported full-year sales of $8.61 billion, a 7.9 percent decline from 2015.

Reliance sold 1.5 percent fewer tons in 2016 at an average selling price that declined 6.8 percent to $1,465 per ton. The company experienced sales declines in its carbon products, down 2.4 percent, and alloy products, down 21.9 percent. Aluminum sales increased 2.1 percent, and stainless sales increased 1.9 percent, from the previous year.

“Operationally, 2016 was a terrific year for Reliance as our focus on maximizing our gross profit margin resulted in our first-ever annual gross profit above 30 percent,” said Gregg Mollins, president and CEO of Reliance. “Although somewhat improved from 2015, the macro environment for our industry continued to be challenging with overall lower demand levels and pricing volatility resulting in a sales decline of $737 million in 2016, due mostly to lower metal pricing.”

In the fourth quarter, Reliance’s net income totaled $61.7 million, a 10.0 percent decrease from fourth-quarter 2015, but an increase of 24.6 percent from the third quarter. Fourth-quarter sales totaled $2.06 billion, a 1.7 percent increase from the same quarter in 2015, but down 5.7 percent from the third quarter.

Pricing picked up at the end of the year, Mollins noted. Price increases for raw materials and successful domestic trade cases are supporting a higher pricing environment. Additionally, customer demand is more positive than the company has seen in some time.

“We look forward to 2017, which we believe will feature a renewed enthusiasm for infrastructure and equipment spending, as well as improvement in the energy market. We believe that Reliance is very well positioned to capitalize on these opportunities,” he said.


June 2017: Thanks for Making Me Feel Like Family
More...
 
Pause
June 2017: Distributors Must Get in Front of Coming Technological Waves
More...
Fall 2016: Cutting & Sawing Equipment
More...
Summer 2016
More...
 
Pause
Advanced Controls on Braner Slitters
More...
AHVS Precision Leveler Features Flip-Top Design
More...
Formtek’s Tishken Slitter Increases Production Volume
More...
Red Bud System Handles High-Strength Steels
More...
Bradbury Launches Flat Trak CL Monitoring System
More...
Artus Knives Custom Designed
More...
 
Pause
Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Sunday, June 25, 2017