RS in with strong Q4 results and a bullish outlook
The steel sector continues to do well with companies giving strong guidance. Steel prices remain high. I'm looking forward to earnings reports from ZEUS and MUSA, both due out on the 2/22. They look like the cheapest plays in the sector, imho.
LOS ANGELES--(BUSINESS WIRE)--Feb. 17, 2005--Reliance Steel & Aluminum Co. (NYSE:RS - News) reported today its financial results for the fiscal year and fourth quarter ended December 31, 2004. For the 2004 fiscal year, net income was $169.7 million, or $5.19 earnings per diluted share, marking the Company's best-ever financial results. This compares with net income of $34.0 million, or $1.07 earnings per diluted share for the 2003 fiscal year. Sales for 2004 totaled a record $2.94 billion, an increase of 56%, compared with 2003 sales of $1.88 billion. The 2004 fiscal year financial results include in cost of sales a pre-tax LIFO expense amount of $110.8 million, or $2.13 per diluted share.
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For the 2004 fourth quarter, net income was $43.0 million, compared with net income of $9.7 million for the same period in 2003. Earnings per diluted share were $1.31 for the three-months ended December 31, 2004, compared with earnings of $.30 per diluted share for the same period last year. Sales for the 2004 fourth quarter were $742.8 million, up 53%, compared with 2003 fourth quarter sales of $485.2 million. The 2004 fourth quarter financial results include in cost of sales a pre-tax LIFO expense amount of $18.3 million, or $.39 per diluted share.
David H. Hannah, Chief Executive Officer of Reliance said, "We are very pleased with our 2004 record-breaking financial results. 2004 was quite a year, unlike any other we have seen. Unprecedented high prices for some of our metal products coupled with improved demand from our customers contributed to our exceptional results. The fourth quarter's operating results were stronger then we anticipated, primarily because of higher revenues and better gross profit margins. Additionally, the Company's fiscal 2004 effective income tax rate decreased slightly compared to 2003 and that also benefited the fourth quarter results.
"We are optimistic that pricing and demand for our products will remain at favorable levels in 2005. While we do not expect the benefit of rapidly accelerating metal prices as we experienced in 2004, we do believe that 2005 will be another outstanding year when compared with all years other than 2004, with full year 2005 earnings per diluted share above the analysts' current consensus estimate. Further, we estimate earnings per diluted share for the 2005 first quarter in a range of $1.05 to $1.15," Hannah concluded.
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