Reliance Steel & Aluminum Co. said on Thursday that third-quarter net income rose 63 percent from a year ago, with the company seeing additional revenue from a recent acquisition.
Los Angeles-based Reliance reported net income of $153 million ($2.07 a share) for the quarter ended Sept. 30, compared to $93.6 million ($1.22) a year earlier. Revenue increased 42 percent to $2.57 billion.
Analysts surveyed by FactSet Research on average projected earnings of $1.94 a share.
Chief Executive David Hannah said in a statement that business from existing operations began to soften in September, but was offset by new business from its acquisition of PNA Group, which closed Aug. 1.
"We expect the business climate to become more difficult over the next couple of quarters," said Hannah, adding that the company was not yet comfortable giving fourth-quarter guidance. "The 2001 to 2003 period was much more difficult for our industry than it is currently. We successfully managed through that period and we expect to do so again."
Reliance shares, which initially jumped 7 percent on the news, closed down $1.15, or 4 percent, to $25.66 on the New York Stock Exchange. Shares then rebounded $1.08 to $26.74 in aftermarket trading.
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