June 2009 -- Reliance Steel & Aluminum Co. reported record net income of $482.8 million in 2008, an increase of 18% over 2007. Total sales for the year also reached a new high of $8.7 billion, a 20% improvement over 2007 revenue of $7.3 billion.
In August 2007, Reliance purchased PNA Group Holding Corp. for approximately $1.1 billion. PNA's six subsidiaries process and distribute carbon steel plate, bar, structural and flat-rolled products.
"Overall, our tons sold for the year were up 12% compared to 2007, due principally to our PNA acquisition," said Reliance Chairman and CEO David Hannah in a February 19 statement. He added that while the company had plans ready by mid-year to deal with a changing economy, "We did not, however, anticipate the magnitude and speed of the changes. Starting primarily in November and December, we experienced sudden declines in demand and accelerated mill pricing reductions that resulted in significant competitive pressures and deteriorating profit margins as metals service centers, including Reliance, focused on inventory destocking."
