Reliance Falls on Lower Q3 Outlook

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Reliance Steel & Aluminum Co. on Thursday posted second-quarter earnings that slightly beat Wall Street forecasts, but its shares slid on the company’s forecast for a softer third quarter.

Net earnings rose to $157 million, or $2.12 per share, from $123 million, or $1.59 per share, in the same quarter of 2007, the Los Angeles-based company said. Net sales in the second quarter rose more than 10 percent to $2.1 billion.

The earnings slightly beat the $2.10 consensus of analysts polled by Thompson First Call.

Reliance expects third-quarter earnings of $1.80 to $1.90 a share, compared to the consensus outlook of $1.94.

Reliance, which sells metal products to the aerospace, energy and construction industries, also announced a public offering of 6.8 million common shares. It will use the proceeds to finance part of its proposed acquisition of PNA Group Holding Corp., a steel service center group.

The company said it expects to grant the underwriters an option to buy as many as 1 million additional shares. Reliance has 72.9 million shares outstanding.

Shares of Reliance dropped $4.89, or 7 percent, to $66.89 in midday trading on the New York Stock Exchange.

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