Reliance Steel & Aluminum Co. reported net income of $43.0 million on sales of $742.8 million for the fourth quarter and record net income of $169.7 million on record sales of $2.94 billion for the fiscal year ended December 31, 2004.

Fourth Quarter Results—Net income of $43.0 million ($1.31 per diluted share) compares to net income of $9.7 million ($.30 per diluted share) for the same period in 2003. Sales were $742.8 million, up 53%, compared with 2003 fourth quarter sales of $485.2 million. Financial results include in cost of sales a pre-tax LIFO expense amount of $18.3 million ($.39 per diluted share).

Fiscal Year Results—Net income of $169.7 million ($5.19 per diluted share) marks the company's best-ever financial results. This compares with net income of $34.0 million ($1.07 per diluted share) for 2003. Sales totaled a record $2.94 billion, an increase of 56%, compared with 2003 sales of $1.88 billion. Financial results include in cost of sales a pre-tax LIFO expense amount of $110.8 million ($2.13 per diluted share).

Management Comments—David H. Hannah, CEO of Reliance said, "We are very pleased with our 2004 record-breaking financial results. 2004 was quite a year, unlike any other we have seen. Unprecedented high prices for some of our metal products coupled with improved demand from our customers contributed to our exceptional results. The fourth quarter's operating results were stronger then we anticipated, primarily because of higher revenues and better gross profit margins. Additionally, the company's fiscal 2004 effective income tax rate decreased slightly compared to 2003 and that also benefited the fourth quarter results.

"We are optimistic that pricing and demand for our products will remain at favorable levels in 2005. While we do not expect the benefit of rapidly accelerating metal prices as we experienced in 2004, we do believe that 2005 will be another outstanding year when compared with all years other than 2004, with full year 2005 earnings per diluted share above the analysts' current consensus estimate. Further, we estimate earnings per diluted share for the 2005 first quarter in a range of $1.05 to $1.15," Hannah concluded.

In July of 2004, the company's regular quarterly cash dividend rate was increased by 17%. On October 20, 2004, the company's Board of Directors declared the regular quarterly cash dividend of $.07 per share of common stock. The 2004 fourth quarter cash dividend was paid on January 7, 2005 to shareholders of record December 10, 2004. 2005 marks the 45th 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 more than 100 locations 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. These products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper; titanium and alloy steel sold to more than 95,000 customers in various industries.