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Jun 30, 2021
Reliance Steel Q2 2021 Earnings Report
Reported record financial performance driven by resilient business model and favorable market conditions.
Key Takeaways
Reliance Steel & Aluminum Co. reported record second-quarter financial results, including record net sales of $3.42 billion, gross profit of $1.08 billion, and EPS of $5.08. The company's performance was driven by strong demand in the majority of its end markets, favorable metal pricing, and effective execution by its managers.
Record quarterly net sales of $3.42 billion.
Record quarterly gross profit of $1.08 billion driven by strong gross profit margin of 31.7%.
Record quarterly pretax income of $444.1 million and record pretax income margin of 13.0%.
Record quarterly EPS of $5.08.
Forward Guidance
Reliance anticipates non-GAAP earnings per diluted share in the range of $5.55 to $5.75 for the third quarter of 2021.
Positive Outlook
- Strong underlying demand in the majority of the end markets.
- Metal prices at the beginning of the third quarter of 2021 are higher than the average for the second quarter of 2021.
- Average selling price per ton sold for the third quarter of 2021 will be up 7% to 9%.
- Company estimates its tons sold will be down 1% to up 1% in the third quarter of 2021 compared to the second quarter of 2021.
- Reliance remains optimistic about business conditions in the current environment.
Challenges Ahead
- Factors impacting shipment levels in the second quarter of 2021 such as metal supply constraints and supply chain disruptions will continue to persist in the third quarter of 2021.
- Demand for the toll processing services Reliance provides to the automotive market softened slightly from first quarter levels.
- Demand in commercial aerospace softened in the second quarter compared to first quarter shipment levels due to increased COVID-19 related shutdowns in Europe.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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