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Reliance Steel & Aluminum Co. (NYSE:RS) today reported its financial results for the fourth quarter and full year ended December 31, 2012.
Fourth Quarter 2012 Financial Highlights
Sales were $1.89 billion, down 7.1% from $2.03 billion in the fourth quarter of 2011 and down 8.1% from $2.06 billion in the third quarter of 2012. Tons sold were down 3.9% from the fourth quarter of 2011 and down 8.3% from the third quarter of 2012.
Net income was $80.4 million, up 18.4% from $67.9 million in the fourth quarter of 2011 and down 18.0% from $98.1 million in the third quarter of 2012.
Earnings per diluted share were $1.06, up 16.5% from $0.91 in the fourth quarter of 2011 and down 18.5% from $1.30 in the third quarter of 2012.
A pre-tax LIFO credit, or income, of $37.1 million, is included in cost of sales compared to a pre-tax LIFO charge, or expense, of $17.8 million for the fourth quarter of 2011 and a credit of $27.0 million for the third quarter of 2012.
Cash flow from operations was $333.1 million in the 2012 fourth quarter, up from $217.5 million in the 2011 fourth quarter.
A quarterly cash dividend of $0.30 per share was declared on February 19, 2013 for shareholders of record as of March 1, 2013. This represents a 20% increase.
Full Year 2012 Financial Highlights
Sales were $8.44 billion, up 3.8% from $8.13 billion in 2011. Tons sold increased 5.4% from the prior year.
Net income was $403.5 million, up 17.4% from $343.8 million in 2011.
Earnings per diluted share were $5.33, up 16.4% from $4.58 in 2011.
A pre-tax LIFO credit, or income, of $64.1 million, is included in cost of sales for 2012 compared to a pre-tax LIFO charge, or expense, of $85.3 million for 2011.
Cash flow from operations was $601.9 million in 2012, up from $234.8 million in 2011.
“Our fourth quarter results reflect the impact of continued global economic uncertainty on our industry coupled with normal seasonal trends including fewer shipping days as a result of the holiday season and extended holiday-related closures by various customers. However, our average price per ton sold held steady on a sequential quarter basis in our fourth quarter, allowing us to improve our gross profit margin. Our LIFO credit in the 2012 fourth quarter boosted our margins, but more importantly, our local managers were able to improve our FIFO gross profit margins as demand declined,” said David H. Hannah, Chairman and CEO of Reliance.