Q2 2024 Reliance Inc Earnings Call Transcript
Key Points
- Reliance Inc (RS) achieved a strong gross profit margin of 29.8%, within their long-term sustainable range of 29% to 31%, despite a challenging pricing environment.
- The company completed two acquisitions in the second quarter and three year-to-date, adding nearly $500 million in annualized net sales based on 2023 results.
- Reliance Inc (RS) repurchased $519.3 million of common stock during the second quarter and $165.4 million in July, demonstrating confidence in their future.
- The company invested $98.2 million in capital expenditures during the second quarter, primarily directed towards growth by improving value-added processing capabilities and increasing capacity.
- Reliance Inc (RS) outperformed industry shipment levels, with tons sold increasing 4% compared to the first quarter of 2024 and 4.7% year-over-year.
- Carbon steel pricing declined further than anticipated during the second quarter, negatively impacting gross profit margins and earnings per diluted share.
- The average selling price per ton sold decreased by 3.8% compared to the first quarter of 2024, exceeding expectations of a 1% to 3% decline.
- The semiconductor industry demand continued to contract due to excess inventories in the supply chain, although signs of stabilization were noted.
- The company anticipates continued pricing pressure in the third quarter of 2024, with expected declines in tons sold and average selling prices.
- Non-GAAP diluted earnings per share of $4.65 came in slightly below the guided range due to pricing levels retreating further than anticipated.
Greetings, and welcome to the Reliance, Inc. second-quarter 2024 earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Kim Orlando. Thank you, and you may begin.
Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's second-quarter 2024 financial results. I am joined by Karla Lewis, President and Chief Executive Officer; Steve Koch, Executive Vice President and Chief Operating Officer; and Arthur Ajemyan, Senior Vice President and Chief Financial Officer.
A recording of this call will be posted on the Investors section of our website at investors.reliance.com. Please read the forward-looking statement disclosures included in our earnings release issued this morning and note that it applies to all statements made during this teleconference. The reconciliations of the adjusted numbers are included in the non-GAAP reconciliation part
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