For the 2011 third quarter, Reliance reported net income of $84.9 million, that was up 74% from 2010 third quarter net income of $48.7 million and it was down 14% from $98.7 million in the 2011 second quarter.Our earnings per diluted share were $1.13 in the 2011 third quarter, up 74% from 2010 third quarter earnings per diluted share of $0.65 and down 14% from the 2011 second quarter. Sales for the 2011 third quarter, were $2.14 billion, up 29% from 2010 third quarter sales of $1.65 billion and up 4% from 2011 second quarter sales of $2.05 billion. For the 9 months ended September 30, 2011, our net income amounted to $275.9 million. That was up 78% compared with net income of $154.9 million for 2010 9-month period. Earnings per diluted share were $3.68 for the 9 months ended September 30, 2011. That was up 77% compared with earnings of $2.08 per diluted share for the 9 months ended September 30, 2010. Our sales for the 2011 9-month was $6.1 billion, up 29% from 2010 9-month sales of $4.73 billion. We sold 1.08 million tons of metal in the 2011 third quarter. That was up 13% from the 2010 third quarter and it was up 4% from the 2011 second quarter. The average price per ton sold in the 2011 third quarter was $1,973 and it was up 16% compared to the 2010 third quarter and about flat compared to the 2011 second quarter. For the 2011 third quarter, carbon steel sales were 53% of our net sales; aluminum sales were 15%; stainless steel was 15%; alloy sales were 11%; toll processing sales were 2%; and other miscellaneous were 4%. By commodity, we sold 876,000 tons of carbon steel products in the 2011 third quarter. That was up 2% from the 2011 second quarter, with average selling prices down 1%. Our aluminum tons sold of 57,000 were down 2%, with the average price up 1%. Stainless steel tons sold were 53,000, up 6%, with the average price down 3%. And alloy tons sold of 77,000 were up 33%, with the average price up 2%. Now the large increase in our alloy tons sold was due to our Continental Alloys acquisition, which closed on August 1.
In the end, the third quarter had more twists and turns than we anticipated. Volume turned out to be a little stronger with same-store tons up 1.4% from the second quarter. Typically, third quarter volumes are down from the second quarter, and this was certainly true in July when our tons sold per day decreased 1.5% from June. And then normally, we see a pretty good uptick in volume per day in August compared to July, but that didn't happen as same-store volume per day dropped almost 1% in the face of the U.S. debt ceiling embarrassment, more talk of a double-dip recession, European financial concerns, a falling stock market and softening prices for most all the metals we sell. All of those events led to an even higher level of discomfort and uncertainty that preempted any thoughts of improvement in business levels or confidence.In September, though, volumes did improve and our tons sold per day were up over 4% compared to August. Our FIFO gross profit margins dropped over 2% during July and August as volume was off and mill prices for most of the products we sell were decreasing. Then in September, our gross profit margins leveled out as carbon steel pricing began to improve along with sales volumes. So in summary, tons were a little better and pricing and margins were clearly worse than what we expected for the quarter. Read the rest of this transcript for free on seekingalpha.com