- Reliance Steel & Aluminum (RS +6.7%) net sales declined by 30% Y/Y to $20.2B in Q2, and net income was $80.2M a decrease of 56.2% Y/Y.
- Carbon steel sales $1.07B (-29.9% Y/Y); Aluminum $393.4M (-30.3% YY); Stainless steel $336.4M (-17.4% Y/Y); and Alloy $99.9M (-41.2% Y/Y).
- Q2 Gross margin improved by 80 bps to 30.4%.
- Cash provided by operations was $475.7M for the quarter, vs. $346M a year ago. Free cash flow was $434.7M; and Net debt-to-total capital was 20.4%.
- Tons sold declined 17.5% sequentially and 19.6% Y/Y; with average selling price per ton sold at $1,681 (-11.7% Y/Y and -3.5% Q/Q); experienced decreased demand in nearly all of the end markets it serves due to customer shut-downs and project delays attributable to COVID-19.
- Reliance management expects overall demand in 3Q20 to improve slightly compared Q2. Company anticipates a further offset in shipping volume due to normal seasonal customer shutdowns and vacation schedules typical in Q3; estimates tons sold to be flat to up 2% in 3Q20; and anticipates gross profit margin to remain near the high end of 28% to 30%.
- Previously: Reliance Steel & Aluminum EPS beats by $0.96, beats on revenue (July 23)
- Previously: Reliance Steel & Aluminum declares $0.625 dividend (July 23)