Reliance Steel & Aluminum Co. reported net income of $49.4 million on record sales of $870.1 million, and record net income of $144.8 million on record sales of $2.5 billion for the third quarter and nine months ended September 30, 2005, respectively.

Third Quarter Results—The $49.4 million net income ($1.49 per diluted share) represents a 12% increase compared with net income of $44.1 million ($1.35 per diluted share ) for the same period in 2004. Earnings per diluted share are 10% higher than YTD 2004. Sales, a record $870.1 million, reflect an 11% increase compared with 2004 third quarter sales of $783.7 million. Financial results include in cost of sales a pre-tax LIFO expense amount of $4.0 million ($.07 per diluted share) compared with a pre-tax LIFO expense amount of $32.5 million ($.60 per diluted share) in the 2004 third quarter.

Nine Month Results—Net income amounted to a record $144.8 million, a 14% increase compared with net income of $126.8 million for the same period in 2004. Earnings per diluted share were $4.38, a 13% increase compared with earnings of $3.88 per diluted share for the nine months ended September 30, 2004. Sales, a record $2.5 billion, reflect an increase of 14% compared with 2004 nine month sales of $2.2 billion. Financial results include in cost of sales a pre-tax LIFO expense amount of $16.5 million ($.31 per diluted share) compared with a pre-tax LIFO expense amount of $92.5 million ($1.72 per diluted share) in the 2004 year-to-date period.

Comments—David H. Hannah, CEO, said, "Our products sold into the aerospace industry continued to show strength during the quarter. We also had the benefit of our Chapel Steel acquisition that was completed on July 1, 2005. Additionally, we experienced a small improvement in volume and pricing for our carbon steel products late in August and through September, as a result of the producers' price increase announcements. Customer demand and pricing for our other metal products remained steady throughout all end markets.

"We do not expect any significant changes in either pricing or demand for the fourth quarter other than the typical seasonal slowdown. At this time, we estimate earnings per diluted share for the 2005 fourth quarter will be in a range of $1.10 to $1.20," concluded Hannah.

On October 10, 2005, the company announced that it reached an agreement with New Wave Technologies Ltd., a Singapore public company, and its associate, Manufacturing Network Pte. Ltd. (MNPL), based in Singapore, to form a joint venture company, Reliance Pan Pacific, Pte. Ltd. Reliance Pan Pacific will be 70% owned by Reliance Steel & Aluminum Co. and 30% owned by MNPL. Upon completion of the transaction, it is expected that, subject to regulatory approvals, MNPL will sell its 100% interest in Everest Metals (Suzhou) Co., Ltd., a Chinese metals service center company, to Reliance Pan Pacific.

The transaction is expected to be finalized in early 2006, subject to the successful completion of due diligence and regulatory approvals, including the approvals of P.R. China and the shareholders of New Wave.

On July 20, 2005, the company's Board of Directors declared an 11% increase in the regular quarterly cash dividend to $.10 per share of common stock. The dividend was paid on September 2, 2005 to shareholders of record August 12, 2005. Over the past five quarters, the regular quarterly dividend payment has increased in total $.04 per share or 67%. The company has paid regular quarterly dividends for 45 consecutive years.

Headquartered in Los Angeles, Calif., Reliance Steel & Aluminum is one of the largest metals service center companies in the United States. Through a network of more than 100 locations in 31 states and Belgium 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.