Reliance Purchases Shares of its Common Stock
08/22/2007 - Reliance Steel & Aluminum has been actively repurchasing shares of its own common stock in the open market under the company's Stock Repurchase Plan.
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Reliance’s Stock Repurchase Plan authorizes it to purchase shares of its common stock from time to time in the open market or in privately negotiated transactions.
Repurchased shares are redeemed and treated as authorized but unissued shares.
At June 30, 2007 there were 76,281,228 shares of the company's common stock issued and outstanding.
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The company’s Stock Repurchase Plan authorizes the purchase of up to 12,000,000 shares of its common stock. From August 16 through August 20, 2007, 645,204 shares were repurchased at an average cost of $44.69 per share.
The company first adopted its Stock Repurchase Plan in December 1994. From that date through December 31, 2006 and prior to the amendment and restatement of that Plan in May 2005, Reliance had repurchased a total of 11,076,550 shares of its common stock at an average cost of $7.47 per share. The Stock Repurchase Plan authorizes the company to purchase shares of its common stock from time to time in the open market or in privately negotiated transactions. Repurchased shares are redeemed and treated as authorized but unissued shares. At June 30, 2007 there were 76,281,228 shares of the company's common stock issued and outstanding.
“We are strong believers that it is in the best long-term interest of our shareholders for us to repurchase our stock under the right circumstances, including when we believe the price presents the opportunity to obtain a higher return on our investment than alternative uses of capital,” said David H. Hannah, Reliance’s CEO.
“Recent stock market activity resulting in a significant decrease in the market value of our stock is not in line with our business outlook included in our 2007 second-quarter and year-to-date financial results conference call held on July 19, 2007. Additionally, we expect to continue to grow our business both organically and by acquisition as accretive opportunities arise,” concluded Hannah.
Headquartered in Los Angeles, Calif., Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. Through a network of more than 180 locations in 37 states and Belgium, Canada, China and South Korea, the company provides value-added metals processing services and distributes a full line of over 100,000 metal products. Products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 125,000 customers in various industries.
