Steel Mills
February 18, 2015
Reliance FY 2014 Results Improve Despite Pressure on Steel Prices
Written by Sandy Williams
Reliance Steel & Aluminum fourth quarter consolidated sales rose 11.7 percent year over year to $2.58 billion. Tons sold increased 4.4 percent year over year to 1,469,300 tons. Carbon steel sales of $1.4 billion fell 5.9 percent sequentially with tons sold down 4.7 percent to 1,999,300 tons. The average selling price per ton of steel dropped 1.3 percent from the previous quarter. Net income for Q4 was $92.3 million, down 3.4 percent from Q3.
“Although metals pricing was generally stronger in 2014 than in 2013, steel pricing was constrained by historically high levels of imports supported, in part, by a strengthening U.S. dollar. This, plus the effects of significant decreases in the price of scrap and other steelmaking raw materials during the 2014 fourth quarter, resulted in falling steel prices that have continued into 2015 and negatively affected our gross profit margins,” said Chairman and CEO David H. Hannah.
