Reliance Steel Raises Outlook for 1st Quarter
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Reliance Steel & Aluminum Co.’s first-quarter profit will jump to as much as $1.40 a share, the company said Tuesday.
The preliminary earnings statement topped analysts’ estimates and sent the price of Reliance stock up 7.5%.
According to the disclosure, net income will be $1.30 to $1.40 a share, up from 92 cents a year earlier. The Los Angeles-based metals distributor said final results would be released April 21. Earnings topped the company’s Feb. 17 forecast of $1.05 to $1.15 and the average estimate of $1.11 in a Thomson First Call survey of five analysts.
Shipments and prices increased slightly from the fourth quarter, Reliance said.
Profit margins may have been boosted by prices for steel bars and improving demand for aluminum parts in aircraft, BB&T; Capital Markets analyst Lloyd O’Carroll said.
Shares of Reliance rose $3 to $43.28 on the New York Stock Exchange, their biggest gain since Feb. 18. The shares are up 20% from a year ago.
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