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Dec 31, 2019
Reliance Steel Q4 2019 Earnings Report
Reliance Steel reported financial results with EPS of $2.44.
Key Takeaways
Reliance Steel & Aluminum Co. reported strong Q4 2019 results, with EPS of $2.44. The company's unique business model enabled them to achieve record earnings levels, despite demand and pricing pressure. They also acquired Fry Steel Company.
Reliance achieved a record annual gross profit margin of 30.3% in 2019.
The company's net debt-to-total capital ratio was 21.4% at the end of 2019.
Reliance acquired Fry Steel Company effective December 31, 2019.
The company launched FastMetals, Inc., a new e-commerce business, on February 19, 2020.
Forward Guidance
Reliance management is optimistic about business conditions in the first quarter of 2020 and anticipates non-GAAP earnings per diluted share in the range of $2.00 to $2.10.
Positive Outlook
- End demand in the first quarter of 2020 is expected to remain relatively healthy.
- Tons sold are estimated to be up 6% to 8% in the first quarter of 2020 compared to the fourth quarter of 2019, including the normal seasonal increase in shipping volumes.
- Overall metals pricing is expected to remain near current levels.
- Average selling price per ton sold for the first quarter of 2019 is expected to increase 1% to 2% compared to the fourth quarter of 2019.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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