Reliance Steel & Aluminum Co., Los Angeles, CA, sales for the third quarter ended Sept. 30, 2006, were $1.6 billion, an increase of 87% compared with 2005 third quarter sales of $870.1 million. Net income was $107.5 million, twice the profit of the same period last year.
The 2006 third quarter results include Yarde Metals, Inc. acquired on Aug. 1, 2006 and Earle M. Jorgensen Company acquired on April 3, 2006.
For the nine months ended Sept. 30, 2006, profit amounted to a record $279.9 million, up 93% compared with net income of $144.8 million for the same period in 2005. Sales for the 2006 year-to-date period were a record $4.2 billion, an increase of 67% compared with 2005 nine-month sales of $2.5 billion.
David H. Hannah, CEO of Reliance said, “Demand and pricing for our products continued at a healthy pace during the third quarter. The aerospace, energy and non-residential construction markets stood out as the most improved from the prior year. Our Aug. 1, 2006 acquisition of Yarde Metals, Inc. also favorably affected our financial results.”
“We are optimistic regarding the current operating environment despite some softening in the prices for some of our products. As usual for the fourth quarter, we also expect some normal seasonal slowdown in purchasing by our customers,” said Hannah.
On Aug. 1, 2006, Reliance completed the acquisition of Yarde Metals, Inc., a metals service center company headquartered in Southington, CT, and its second largest acquisition in terms of revenues. The company paid $100 million in cash and assumed about $102 million of net debt for all of the outstanding common stock of Yarde Metals, Inc. Yarde’s net sales for the fiscal year ended June 30, 2006 were $385 million.
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