On Thursday, Los Angeles, California-based metals service center company Reliance Steel & Aluminum Co. reported that in Q1, 2013, sales fell 11.5 percent to $2.03 billion compared to Q1 2012 but were up 7.2 percent from $1.89 billion in Q4 2012. Tons sold dropped 5.8 percent from Q1 while net income was $83.7 million, down 28 percent from $116.2 million in Q1 and up 4.1 percent from $80.4 million in Q4 2012. While there was some seasonal improvement from Q4 2012 to Q1 2013, demand was weaker in Q1 2013 compared to the same period a year ago. Average prices fell across all of Reliance Steel's product groups, with prices in the carbon steel sector declining by about 10 percent.
Among the industries that Reliance Steel serves, Aerospace was mixed in Q1 as pricing held steady while overall demand declined slightly compared to Q1 2012, Energy (oil and gas) continued to be among the company's best end-market despite lower demand levels and heavy industry performed reasonably well, primarily driven by the strength of manufactured products. Meanwhile, Automotive exhibited strong and steady demand in Q1, and Reliance anticipates that strength to sustain though the remainder of the year. Non-residential construction continued to show signs of a slow and steady recovery.