Reliance Steel's 1Q earnings more than double

Reliance Steel & Aluminum Co. said Thursday its first-quarter net income more than doubled as it sold more products at higher prices.

Reliance Steel's net income totaled $92.3 million, or $1.23 a share, in the quarter that ended March 31. That compared with net income of $44.7 million, or 60 cents a share, in the year-ago quarter.

Revenue rose 31.5 percent to $1.91 billion.

Analysts surveyed by FactSet forecast, on average, earnings per share of $1.07 and revenue of $1.85 billion.

Tons sold in the first quarter rose 12 percent from a year ago while average prices per ton increased 18 percent, the company said.

The Los Angeles metals service center company said demand improved across an array of industries, including energy, mining, farm and heavy equipment, rail cars, barges and general manufacturing.

Chairman and CEO David H. Hannah attributed the results to the higher pricing environment.

He said demand for carbon steel structural products was the weakest, but he has seen some improvement in that product line in certain areas of the country.

Hannah said prices are fluctuating, which will result in overall steady to slightly lower prices through the second quarter, but demand is expected to continue to improve.

For the second quarter, Reliance Steel forecast earnings of $1.20 to $1.30 per share. That compares with an estimate of $1.29 per share, according to FactSet.

Shares of Reliance Steel rose 14 cents to close at $56.81.