Reliance Steel (RS) Tops Q3 EPS by 11c, Revs Light

October 22, 2009 9:01 AM EDT

Reliance Steel (NYSE: RS) reports Q3 EPS of $0.57, 11 cents better than the analyst estimate of $0.46. Revenue for the quarter was $1.24 billion, which compares to the estimate of $1.34 billion.

David H. Hannah, Chairman and CEO of Reliance said, "The 2009 third quarter results improved substantially from the 2009 second quarter mainly due to higher gross profit margins. Because of mill price increases for most of our products during the third quarter and our significant inventory reductions over the past twelve months, our inventory costs on hand are now more in line with current replacement costs allowing us to improve our gross profit margins from the historically low margins experienced in the 2009 second quarter. We further reduced our FIFO inventory levels by $92 million in the quarter. Demand from our customers improved slightly during the quarter from the low levels experienced in July."

He also said, "We are pleased with the significant improvement in our gross profit margins; however, we are uncertain as to business activity in the 2009 fourth quarter."

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