June 2008 -- Reliance Steel & Aluminum Co., a provider of value-added metals processing services and a
producer of over 100,000 metal products, had record sales in the first quarter of 2008, at $1.91
billion, an increase of 3.6% from the comparable quarter in 2007 when sales were at $1.84
billion. Net income for the first quarter of 2008 was $107.4 million, down slightly from the
$111.7 million reported in the same quarter in 2007.
Announcing the results on April 17, 2008, David Hannah, chairman and CEO, said, "The 2008 first
quarter turned out well. Pricing for our products was strong with significant increases in
carbon steel, leading to improved gross profit margins. Demand in the markets that we serve
remained fairly healthy, especially in the non-residential construction, energy, oil and gas,
and aerospace industries. Additionally, our cash flow from operations during the quarter was
strong and we managed our working capital well."
Looking forward, Hannah expects prices to be up or flat for most of the metals we sell through
at least the second quarter of 2008. "Demand remains more difficult to predict. We believe our
customers will continue to be cautious in their buying, especially given the uncertainty in many
areas of the economy and the mostly negative views of business activity portrayed by the media;
therefore we do not expect any significant changes in demand in any of our market segments."
On April 1, Reliance acquired Dynamic Metals International LLC based in Bristol, Conn., an $11
million specialty metal distributor of primarily maraging steel. Dynamic will operate as part of
Reliance's subsidiary, Service Steel Aerospace Corp., headquartered in Tacoma, Wash.
