Metals processor Reliance Steel & Aluminum Co's （RS.N） fourth-quarter profit dropped on steel price increases from its suppliers and seasonably lower demand.
It said demand for its products was getting better and expected to grow this year, especially in the energy and aerospace industries, and it gave a first-quarter earnings forecast in line with current analyst expectations.
"We believe that real underlying demand is steadily improving, but not at a large or rapid rate," Chairman and Chief Executive Officer David Hannah said on Thursday.
"We expect this slow and steady growth pattern to continue as the year progresses. Given these expectations, 2011 looks like a much better year than 2010."
Reliance Steel said net fourth-quarter earnings were $39.5 million, or 53 cents per share, compared with $92.1 million, or $1.25 per share in the same quarter of 2009, the Los Angeles-based company said. Sales rose 24 percent to $1.58 billion.
The fourth-quarter results included a pretax accounting charge of $10.0 million, compared with a pretax accounting credit of $87.5 million in the 2009 fourth quarter.
"Our guidance for the 2010 fourth quarter did not anticipate the carbon steel price increases that were announced by the carbon steel producers consistently throughout December," said Hannah.
"Demand during the quarter was seasonably lower than the 2010 third quarter, but not by as much as we expected."
As a result, he said Reliance sold a little more steel at generally higher prices and margins than originally expected.
豫公网安备41010502003434号