Reliance Steel & Aluminum Q3 Profit Down; Sees Q4 Adj. EPS Below View

(RTTNews) - Reliance Steel & Aluminum Co. (RS) reported that its net income attributable to the company for the third quarter ended September 30, 2015 declined to $51.4 million, from $95.5 million in the third quarter of 2014. Earnings per share were $0.69, compared to $1.21 in the third quarter of 2014.

Net income attributable to Reliance included a pre-tax impairment and restructuring charge of $55.5 million, or $0.47 per share, in the third quarter of 2015, which was primarily related to businesses serving the energy industry.

Non-GAAP earnings per share were $1.16, down 12.8% from $1.33 in the third quarter of 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $1.02 per share for the quarter. Analysts' estimates typically exclude special items.

Sales were $2.29 billion, down 15.5% from $2.71 billion in the third quarter of 2014. Wall Street expected revenues of $2.37 billion for the quarter.

Tons sold were down 3.9% from the third quarter of 2014, with the average selling price per ton sold down 12.7% from the third quarter of 2014.

The company expects its average selling price in the fourth quarter of 2015 to be down 1% to 2% from the third quarter of 2015. As a result, it currently expects Non-GAAP earnings per share to be in the range of $0.75 to $0.85 for the fourth quarter ending December 31, 2015. Analysts project fourth-quarter earnings of $0.92 per share.

On October 20, 2015, the Board of Directors declared a quarterly cash dividend of $0.40 per share of common stock, payable on December 18, 2015 to shareholders of record as of November 20, 2015. The Company has paid regular quarterly dividends for 56 consecutive years and has increased the dividend 22 times since the 1994 IPO.