Reliance Steel Posts Sharp Drop In 3Q Profit

LOS ANGELES (AP) — Reliance Steel & Aluminum Co., which processes and sells products to aerospace, energy and construction companies, said Thursday its third-quarter earnings plunged 73 percent, partly due to sharply lower sales.

Net income dropped to $41.8 million, or 57 per share, for the three months ended Sept. 30. That compares with profit of $152.5 million, or $2.07 per share, in the year-earlier period.

Sales plunged 52 percent to $1.24 billion from $2.57 billion.

The results include pre-tax income for inventory accounting of $67.5 million, down from $79 million in the year-earlier period.

Analysts expected profit of 46 cents per share on revenue of $1.34 billion, according to a survey by Thomson Reuters. Wall Street estimates typically exclude one-time items.

David H. Hannah, the company's chairman and CEO, said that customer demand had "improved slightly during the quarter from the low levels experienced in July" and that the company was pleased with its improved gross profit margins.