US service centre chain Reliance Steel & Aluminum more than tripled its profits on-year in the first quarter, Kallanish reports.
Reliance earned $266.9 million in Q1 on sales of $2.84 billion. In Q1 2021, Reliance earned $61.7m on sales of $2.57 billion.
“Our resilient business model coupled with outstanding execution in a favourable market resulted in record financial performance during the first quarter of 2021,” says ceo Jim Hoffman. “We experienced ongoing strength in metals pricing, led by multiple price increases for carbon steel products, along with improving demand in many markets, and leveraged our decentralised operating structure, small order sizes, and diversification of products, end markets and geographies, to achieve a record gross profit margin for the third consecutive quarter of 33.6%.”
Non-residential construction serves as the company’s largest end-use market. Tons sold are not yet at pre-pandemic levels – but they are steadily rising in tandem with demand.
“While demand is healthy and continues to improve in most markets, the company’s tons sold have not yet reached pre-pandemic levels,” the company says in its end-use market outlook. “Reliance believes underlying demand is stronger than its first quarter shipment levels reflect due to factors holding back economic activity such as metal supply constraints, labour shortages and supply chain disruptions for Reliance, its customers and its suppliers.”
Dan Hilliard USA