Shares of Reliance Steel & Aluminum Co. fell on Thursday after the company reported earnings below analyst expectations despite record revenue.
The Los Angeles metals service firm reported second-quarter net income of $96.5 million ($1.22 a share), up 19 percent from the same period a year earlier. Revenue rose 7 percent to a record $2.62 billion.
Analysts expected $1.39 a share.
Chief Executive David H. Hannah said the company benefited from an average quarter-to-quarter price increase of 1.8 percent per ton of metals products. Sales volume, however, grew at a rate of less than 1 percent during the quarter that ended June 30.
Shares fell $3.79, or 5 percent, to $71.10 on the NYSE at the close of trading.
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