Reliance: Strong Q4, Leery on ’08 Sales

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Reliance Steel & Aluminum Co. said Thursday that its profit was up in the fourth quarter on higher sales volume thanks mainly to acquisitions but the company said future sales are uncertain because of the slowing economy.


Reliance reported fourth quarter net income of $79.9 million ($1.06 per share), up 7 percent from $74.6 million (98 cents) from the same period a year earlier beating Wall Street’s estimates of $1.01 per share, according to Thomson Financial.


Sales for the Los Angeles-based steel and aluminum distributor also rose 9 percent to $1.71 billion also besting analysts’ estimates of $1.61 billion.


Sales and prices inched up for the year thanks in large part to the company’s five acquisitions during the year. However, Chief Executive David Hannah added that while metal prices have improved this year, “demand … is more difficult to predict given the current uncertainty in many parts of the economy,” he said.


For the full year, net income was up 15 percent to $408 million ($5.36 per share) while sales were up 26 percent to $7.26 billion from.


Shares in Reliance were up 2.4 percent to $52.90 in early trading Thursday on the New York Stock Exchange.

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