Reliance Steel & Aluminum Co. on Thursday said weaker metals pricing contributed to a 6 percent decline in third-quarter profit despite higher sales.
The Los Angeles operator of metals processing centers reported net income of $95.1 million ($1.22 a share), compared with $98.1 million ($1.30) in the same period a year earlier. Revenue rose 19 percent to $2.44 billion.
Analysts surveyed by Thomson Reuters on average expected net income of $1.20 a share on revenue of $2.54 billion.
Overall pricing is expected to remain near the current low levels for the remainder of the year, the company said. "The strong operational execution by our managers in the field partially offset the pricing impact as demonstrated by Reliance’s increase in gross profit margin from 26 percent to 26.3 percent," Chief Executive David Hannah said in a statement.
Shares closed down 74 cents, or 1 percent, to $74.27 on the New York Stock Exchange.