Reliance Steel & Aluminum Co. said its first quarter profit rose 26 percent in the first quarter, but provided guidance for the current quarter that was below Wall Street’s expectations.
The Los Angeles operator of metals processing facilities reported first-quarter net income of $116 million ($1.54 a share), compared with $92.3 million ($1.23) in the same period a year earlier. Revenue rose 21 percent to $2.3 billion.
Analysts surveyed by Thomson Reuters on average had expected $1.50 per share on revenue of $ 2.2 billion.
The company expects second quarter net income of between $1.40 and $1.50 a share, compared with the Wall Street consensus of $1.53.
Chief Executive David Hannah said the industries that continued to provide the most growth during the quarter included oil and gas, aerospace, farm and heavy equipment. Semiconductor and general manufacturing also remained strong.
“We expect real demand to continue its steady improvement from existing levels for most of our products with larger improvements in the aerospace and energy-related industries during the second quarter,” said Hannah in a statement. “There is still some uncertainty regarding the direction of prices for some of the metals we sell, with prices currently moving in different directions for different of our products, but all within manageable ranges.”
Shares closed up 34 cents, or less than 1 percent, to $55.68 on the New York Stock Exchange.