Reliance Steel & Aluminum Co. reported record net income of $52.8 million on record sales of $760.8 million for the quarter and record net income of $82.6 million on record sales of $1.42 billion for the six months ended June 30, 2004. Results represent best-ever financial results for three and six-months periods.

Second Quarter Results—Record net income of $52.8 million ($1.62 per diluted share) compares with net income of $6.4 million ($.20 per diluted share) for the three-months ended June 30, 2003 and net income of $29.8 million ($.92 per diluted share) for the first quarter ended March 31, 2004. Sales were also a record at $760.8 million, an increase of 67% compared with 2003 second quarter sales of $456.3 million, and up 16% compared with 2004 first quarter sales of $655.8 million. Results include a pre-tax LIFO expense amount of $32.5 million ($.60 per diluted share).

Six Month Results—Net income, a record $82.6 million ($2.54 per diluted share) compared with net income of $12.0 million ($.38 per diluted share) for the same period in 2003. Sales, a record $1.42 billion, compared with 2003 six-month sales of $907.2 million.

Comments—Reliance's CEO, David H. Hannah, said, "The positive operating environment and healthy customer demand for our products along with tight supply levels for some of our products favorably contributed to our exceptionally strong and highest-ever quarterly and year-to-date results. As we stated in our press release on June 24, 2004, metals pricing increased significantly during the second quarter. Our gross profit margins also improved as a result of our focus on maximizing our financial profits and returns rather than focusing on volume.

"We believe that customer demand will continue to grow at a modest rate through the remainder of 2004 and into 2005. However, certain metal prices may begin to contract slightly going forward with the potential for additional product availability, which along with some seasonal slowness during the summer months may cause our gross profit margins to decline somewhat in the 2004 third quarter. At this time, our best estimate for the 2004 third quarter earnings per diluted share is a range of $1.00 to $1.20," concluded Hannah.

2004 marks the 44th consecutive year that Reliance has paid quarterly dividends to its shareholders.

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 106 processing and distribution centers in 30 states and Belgium, France and South Korea, the company provides value-added metals processing services and distributes a full line of over 90,000 metal products sold to more than 95,000 customers in various industries.