Nonresidential Construction Boosts Reliance Steel

Reliance Steel & Aluminum Co. did better than anticipated in the third quarter, generating net sales of $2.69 billion. Shipments were higher than expected due to strength in Reliance’s largest segment, nonresidential construction, slipping just 2 percent compared to a typical seasonal decline of 4-6 percent. Demand for carbon structural and tubing products helped boost sales and is expected to remain strong in the fourth quarter. The company posted net income of $162.7 million, down 11.1 percent sequentially but 9.7 percent higher year-over-year.

Carbon steel sales totaled $1.4 million, a 7.6 percent decline sequentially. Steel shipments were down 1.7 percent and 1.1 percent from Q2 and Q3 2018, respectively.