Reliance Steel & Aluminum Co. (NYSE:RS) announced today that on July 24, 2012, its Board of Directors increased the Company’s regular quarterly cash dividend by 67% to $.25 per share of common stock from $.15 per share for the first and second quarters of 2012. The dividend is payable on September 14, 2012 to shareholders of record August 17, 2012. The quarterly cash dividend rate for 2011 was $.12 per share, which was increased 25% to $.15 per share for the 2012 first and second quarterly cash dividends. The new quarterly cash dividend rate is more than double the 2011 rate.
David H. Hannah, Chairman and CEO of Reliance said, “We are very pleased to announce this increase in our quarterly cash dividend rate which significantly enhances the return to our shareholders. Our new quarterly dividend rate returns $1.00 per share on an annual basis, for a yield of over 2% given our recent stock price levels. We have a strong balance sheet, sufficient and consistent cash flow from operations, and ample liquidity to continue our growth strategies and support increased cash dividends going forward, as appropriate.”
“We have increased our dividend 18 times since our IPO in 1994 and have paid quarterly dividends for 53 consecutive years. Reliance has significant earnings capacity with our broad and diverse product base and wide geographic footprint. We also have meaningful exposure to industries that are poised for growth in the years ahead,” concluded Hannah.
Reliance also reported its financial results for the second quarter and six months ended June 30, 2012 today. For the 2012 second quarter, Reliance reported net income of $108.8 million, up 10% from 2011 second quarter net income of $98.7 million. Earnings per diluted share were $1.44 in the 2012 second quarter, up 10% from 2011 second quarter earnings per diluted share of $1.31. Sales for the 2012 second quarter were $2.21 billion, up 8% from 2011 second quarter sales of $2.05 billion, and down 3% from 2012 first quarter sales of $2.29 billion.