Reliance Steel & Aluminum Co. said Thursday that it fell to a net loss in the second quarter due to weak demand for its metals products and a larger-than-expected drop in steel prices related to the weak economy.

The Los Angeles metals processor and distributor reported a second-quarter net loss of $5.79 million (-8 cents per share), compared with net income of nearly $157 million ($2.12) a year ago. Net sales dropped 41 percent to $1.24 billion.

Analysts surveyed by Thomson Reuters on averaged expected earnings of 20 cents per share on sales of $1.46 billion.

The company declined to provide a third quarter outlook due to continued uncertainty over the economy but said it expected to show a profit in that period.

“The 2009 second quarter was the most difficult operating environment that we have ever experienced at our company,” Chief Executive David Hannah said in a statement. “We do believe that the worst is behind us, but overall we don’t anticipate any meaningful improvement in demand for the balance of the year.”

Reliance shares were down $2.93, or 7 percent, to $36.80 in midday trading on the New York Stock Exchange