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Reliance Updates Outlook, Announces Business Expansions

06/25/2004 - Reliance Steel & Aluminum Co. is updating its guidance regarding the company's earnings estimates for the second quarter ended June 30, 2004.

Reliance Steel & Aluminum Co. is updating its guidance regarding the company's earnings estimates for the second quarter ended June 30, 2004.

Reliance also announced the following internal growth activities:

  • Pacific Metal Co. has moved into a new, larger, state-of-the-art facility in Portland, Ore.
  • Arrow Metals based in Garland, Texas, and the Reliance Metalcenter in Wichita, Kansas, are now operating as Bralco Metals. This change expands the product offerings of these locations and allows them to benefit from the strong reputation of Bralco Metals in the marketplace.
  • Central Plains Steel Co. has increased its processing capabilities with an additional slitter in its Kansas City, Kan., facility that was transferred from Pacific Metal Co.
  • Phoenix Metals Co. has added a precision blanking line at its recently built Nashville, Tenn., location, as well as a stainless steel polishing line at its Norcross, Ga., operation.

At this time, Reliance expects earnings to be in the range of $1.40 to $1.60 per diluted share. The current Wall Street analysts' earnings estimates range from $.87 to $1.04 per diluted share. Reliance reported earnings of $.20 per diluted share for the three-month period ended June 30, 2003 and $.92 per diluted share for the prior quarter ended March 31, 2004.

Reliance's CEO, David H. Hannah, said, "In our April 15, 2004 first quarter financial results press release we included an estimate for our 2004 second quarter earnings of $.85 to $.95 per diluted share. However, both customer demand and metals pricing have been at stronger levels than originally anticipated, which is resulting in higher earnings."

Reliance will announce its financial results for the three and six months ended June 30, 2004 on Thursday, July 15, 2004 prior to the opening of the New York Stock Exchange.

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. 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.