Reliance Steel & Aluminum Co. Announces Updated Guidance for the Second Quarter of 2017
June 19 2017 - 4:01PM
Reliance Steel & Aluminum Co. (NYSE:RS) today announced that
the Company is updating its guidance for the second quarter ending
June 30, 2017.
Reliance currently expects earnings per diluted
share to be in the range of $1.30 to $1.40 for the second quarter
of 2017, compared to the Company’s prior outlook of $1.50 to $1.60
per diluted share. As a result of challenging market conditions,
the positive momentum experienced for both demand and pricing
trends in the first quarter of 2017 did not accelerate as
originally anticipated into the second quarter of 2017. In
addition, increased uncertainty in regard to metals pricing has
placed downward pressure on the Company’s gross profit margin.
Despite these changes in market conditions, Reliance continues to
believe that it can sustain a reported LIFO gross profit margin
within the range of 27% to 29%.
About Reliance Steel & Aluminum
Co.Reliance Steel & Aluminum Co., headquartered in Los
Angeles, California, is the largest metals service center company
in North America. Through a network of more than 300 locations in
39 states and twelve countries outside of the United States, the
Company provides value-added metals processing services and
distributes a full line of over 100,000 metal products to more than
125,000 customers in a broad range of industries. Reliance focuses
on small orders with quick turnaround and increasing levels of
value-added processing. In 2016, Reliance’s average order size was
$1,560, approximately 47% of orders included value-added processing
and approximately 40% of orders were delivered within 24 hours.
Reliance Steel & Aluminum Co.’s press releases and additional
information are available on the Company’s web site at
www.rsac.com.
Forward-Looking StatementsThis
press release contains certain statements that are, or may be
deemed to be, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.
Forward-looking statements may include, but are not limited to,
discussions of Reliance’s business strategies and its expectations
concerning future demand and metals pricing and the Company’s
results of operations, margins, profitability, impairment charges,
liquidity, litigation matters and capital resources. In some
cases, you can identify forward-looking statements by terminology
such as "may," "will," "should," "could," "would," "expect,"
"plan," "anticipate," "believe," "estimate," "predict," "potential"
and "continue," the negative of these terms, and similar
expressions.
These forward-looking statements are based on
management's estimates, projections and assumptions as of today’s
date that may not prove to be accurate. Forward-looking
statements involve known and unknown risks and uncertainties and
are not guarantees of future performance. Actual outcomes and
results may differ materially from what is expressed or forecasted
in these forward-looking statements as a result of various
important factors, including, but not limited to, those disclosed
in reports Reliance has filed with the Securities and Exchange
Commission (the "SEC"). As a result, these statements speak
only as of the date that they are made, and Reliance disclaims any
and all obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Important risks and uncertainties about
Reliance’s business can be found in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2016, filed with the
SEC.
CONTACT:
Brenda Miyamoto
Investor Relations
(213) 576-2428
investor@rsac.com
or Addo Investor Relations
(310) 829-5400
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