PR Newswire
LOS ANGELES, July 21, 2016
LOS ANGELES, July 21, 2016 /PRNewswire/ -- Reliance Steel & Aluminum Co. (NYSE: RS) today reported its financial results for the second quarter ended June 30, 2016.
Second Quarter 2016 Financial Highlights
Management Commentary
"I am extremely proud of our managers in the field and their outstanding execution which contributed to our sixth consecutive quarter of FIFO gross profit margin expansion to 31.1%," said Gregg Mollins, President and Chief Executive Officer of Reliance. "Our team has done an excellent job providing higher value to our customers through our significant investments in cutting-edge, value-added processing equipment, and effectively managing our inventory. These efforts, along with recent mill price increases in the marketplace, resulted in further improvement of our gross profit margin in the second quarter of 2016."
Mr. Mollins continued, "The metals pricing environment for carbon steel products was favorable in the second quarter of 2016, with continued mill price increases throughout the quarter. These increases were supported by stable demand, trade case filings by U.S. steel producers, disciplined domestic mill production capacity behavior, and increased raw material costs. However, the overall pricing environment remains below 2015 levels and far below peak levels, with our average selling price per ton sold in the second quarter of 2016 down 10.1% compared to the second quarter of 2015."
Mr. Mollins concluded, "Both strategic M&A opportunities and organic investments will continue to be integral drivers of future growth for Reliance. We've maintained a strong balance sheet and believe our managers have done a great job at right-sizing our inventory levels over the past 18 months. These actions have produced high levels of cash flow, enabling us to execute our balanced capital allocation strategy, allowing for growth of the business as well as stockholder returns, through an increased regular quarterly dividend. We had an outstanding second quarter with strong financial performance characterized by gross profit margin expansion, as well as diligent expense and inventory management to drive improved profitability. Going forward, we will continue executing our strategy with the goal of extending our track record of delivering industry leading results."
Second Quarter 2016 Business Metrics | ||||||||||
(tons in thousands; percentage change) | ||||||||||
| Q2 | Q1 | Sequential | Q2 | Year-Over- | |||||
Tons sold | 1,519.4 | 1,503.0 | 1.1% | 1,508.2 | 0.7% | |||||
Tons sold (same-store) | 1,501.6 | 1,487.9 | 0.9% | 1,508.2 | (0.4%) | |||||
Average selling price per ton sold | $1,438 | $1,425 | 0.9% | $1,600 | (10.1%) | |||||
Average selling price per ton sold (same-store) | $1,431 | $1,419 | 0.8% | $1,600 | (10.6%) | |||||
| | | | | | | | | | |
Second Quarter 2016 Major Commodity Metrics | | | ||||||||||
| Tons Sold (tons in thousands; percentage change) | Average Selling Price per Ton | ||||||||||
| Q2 2016 | Q1 2016 | Sequential | Q2 2015 | Year-Over- | Sequential | Year-Over- | |||||
Carbon steel | 1,233.9 | 1,216.7 | 1.4% | 1,231.4 | 0.2% | 2.6% | (10.0%) | |||||
Aluminum | 91.9 | 90.1 | 2.0% | 89.6 | 2.6% | (0.8%) | (5.1%) | |||||
Stainless steel | 80.9 | 78.2 | 3.5% | 78.3 | 3.3% | (0.1%) | (15.5%) | |||||
Alloy | 41.7 | 49.0 | (14.9%) | 55.3 | (24.6%) | (1.3%) | (5.8%) | |||||
| | | | | | | | | | | | |
| Sales ($ in millions; percentage change) | ||||
| Q2 2016 Sales | Q1 2016 Sales | Sequential | Q2 2015 Sales | Year-Over- |
Carbon steel | $1,172.6 | $1,126.9 | 4.1% | $1,299.4 | (9.8%) |
Aluminum | $462.8 | $457.2 | 1.2% | $475.3 Werbung Mehr Nachrichten zur Reliance Inc Aktie kostenlos abonnieren
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