Reliance Steel & Aluminum Co. reported its financial results for the fourth quarter with a 72% increase in net income to $67.9 million from the previous year's fourth quarter. Sales for the fourth quarter were up 28% to $2.03 billion from 4Q10, but down 5% from 3Q11. For total 2011, net income increased 77% to $343.8 million from 2010 with total sales up 29% to $8.13 billion. The company sold 13% more tons in 2011 than 2010 with average prices per ton up 15%.

David Hannah, Chairman and CEO of Reliance, said, "The 2011 fourth quarter started out slower than we expected, with tons sold in October up only slightly over September on a per day basis. However, November and December tons sold were stronger than we had anticipated resulting, overall, in a solid fourth quarter demand environment.Those industries where we experienced more significant improvements over 2010 were energy (oil & gas), agriculture and mining. Aerospace, semiconductor and electronics, and our toll processing businesses, primarily related to the auto industry, were also solid. Even non-residential construction improved slightly over 2010, but significantly lagged compared to the improvements in our other markets."

"Currently, the prices of most of the metals we sell are increasing over the fourth quarter levels, and we expect pricing, overall, to remain relatively strong through the 2012 first quarter. Additionally, we anticipate demand to continue to improve slowly but steadily, except for the energy (oil & gas), aerospace, heavy equipment (farm and mining), and auto industries where we look for higher than average growth," concluded Hannah.

Source: Reliance Steel & Aluminum Co.