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Reliance Steel & Aluminum
Reports 1st Quarter Results

April 16, 2004 — Reliance Steel & Aluminum Co. reported its best-ever quarterly financial results for the three months ended March 31, 2004, including record net income of $29.8 million on highest-ever sales of $655.8 million.

Net earnings, $29.8 million ($.92 earnings per diluted share) compares with net income of $5.6 million ($.18 earnings per diluted share) for the three months ended March 31, 2003 and net income of $9.7 million ($.30 earnings per diluted share) for the fourth quarter ended December 31, 2003. Sales, at $655.8 million, represent an increase of 46% compared with 2003 first quarter sales of $450.8 million and are up 35% compared with 2003 fourth quarter sales of $485.2 million. The 2004 first quarter financial results include a pre-tax LIFO expense amount of $27.5 million, or $.51 per diluted share.

Reliance's CEO, David H. Hannah, said, "As we stated on February 19 and March 24, 2004, metals pricing and business activity were increasing significantly during the first quarter. Volumes (or tons sold not including toll processing) increased 19% compared to the 2003 first quarter and 15% compared to the 2003 fourth quarter. Demand levels continue to strengthen, allowing us to pass along the higher costs of our products to our customers. Metals pricing for the majority of our products continues to rise and supply levels and availability remain tight.

"Most of the industries that we serve have shown improved sales levels, with the exception of the commercial aerospace market. Additionally, all geographic areas where we operate have experienced improved business activity. We expect the current business environment to continue through the 2004 second quarter. Prices, overall, should remain at elevated levels. Once again, gross profit management will be the key factor. We expect our LIFO expense amount in the second quarter to be similar to the amount recorded in the 2004 first quarter. At this time, our best estimate for the 2004 second quarter is a range of $.85 to $.95 earnings per diluted share," said Hannah.

On February 24, 2004, Reliance announced its regular quarterly cash dividend payment of $.06 per share of common stock. The 2004 first quarter cash dividend was paid on April 2, 2004 to shareholders of record March 12, 2004. 2004 marks the 44th consecutive year that Reliance has paid quarterly dividends to its shareholders.

Reliance Steel & Aluminum Co., headquartered in Los Angeles, Calif., 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. 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.

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