Shares in Reliance Steel & Aluminum Co. gained more than 3 percent Thursday after the company reported increased fourth quarter profits on booming sales.

Reliance Steel & Aluminum Co. reported net income of $74.6 million (98 cents per share), up 23 percent from $60.6 million (91 cents) from the same period a year earlier. That beat analysts’ projections of $1.22 a share, after accounting for a larger-than-expected $37.9 million (31 cents per share) LIFO inventory accounting charge, the company said.

Sales for the Los Angeles-based steel and aluminum distributor surged 81 percent to $1.57 billion.

Reliance said it expects “record sales and earnings again” in 2007 due to the effect of seven acquisitions the company made during 2006, which the company hopes will increase revenues by more than $1 billion from 2006.

The company also said that its board approved a 33 percent increase in its regular quarterly cash dividend, bringing the payout to 8 cents per share.

Shares in Reliance were up 3.3 percent ($1.42) to $44.52 in afternoon trading Thursday.