Reliance Steel & Aluminum Q4 Profit Down

(RTTNews) - Reliance Steel & Aluminum Co. (RS) reported that its fourth-quarter net income declined to $85.6 million or $1.22 per share from $301.4 million or $4.09 per share last year.

Non-GAAP earnings per share dropped to $1.08 from $1.22 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.72 per share. Analysts' estimates typically exclude special items.

Net sales grew to $2.814 billion from $2.376 billion last year. Analysts expected revenue of $2.76 billion for the quarter.

Looking ahead to 2019, the company remains optimistic about the solid demand environment in nearly all of the end markets in which it operates. This, combined with continued healthy pricing, gives us confidence in ability to continue maximizing its earnings power and increasing value for its stockholders.

On February 19, 2019, the Board of Directors declared a quarterly cash dividend of $0.55 per share of common stock, an increase of 10.0%, payable on March 29, 2019 to stockholders of record as of March 15, 2019. Reliance management remains optimistic in regard to business conditions in the first quarter of 2019. The Company expects that demand in the first quarter of 2019 will remain healthy and estimates tons sold will be up 6% to 8% in the first quarter of 2019 compared to the fourth quarter of 2018, which includes the normal seasonal increase in shipping volumes compared to the fourth quarter.

Based on these expectations, Reliance management currently anticipates non-GAAP earnings per share in the range of $2.35 to $2.45 for the first quarter of 2019. Analysts project first-quarter earnings of $2.16 per share.