Reliance Steel Q3 Profit Almost Flat; Sees Q4 Earnings Below Street View

(RTTNews) - Reliance Steel & Aluminum Co. (RS) reported third-quarter earnings which were nearly flat with last year, hurt by higher operating costs. The company expects fourth-quarter earnings below analysts' expectations.

Net income remained nearly flat at $95.5 million, compared with last year's $95.1 million. Net earnings per share declined to $1.21 from $1.22 last year. There was an increase of about 1 million in number of diluted shares outstanding compared with the year-ago quarter.

Excluding certain items, the company recorded a profit of $105.1 million or $1.33 per share.

On average, analysts polled by Thomson-Reuters estimated earnings to be $1.35. Analysts' estimates typically exclude one-time items.

Net sales increased to $2.71 billion from $2.44 billion in the previous year. Analysts projected sales to be $2.67 billion.

On October 21, the board recommended a quarterly cash dividend of $0.35 per share, payable on December 18 to shareholders of record on November 11.

Looking ahead, the company expects fourth-quarter adjusted earnings to be $1.00 - $1.10 per share. It expects fourth-quarter sales volume and prices to be lower than last year.

Analysts project fourth-quarter earnings to be $1.18 on revenues of $2.57 billion.

Reliance's Board of Directors extended the existing Share Repurchase Plan to December 31, 2017, the company said.