Reliance Inc

RS

Equity

ISIN US7595091023 / Valor 247280

New York Stock Exchange, Inc (2024-12-24)

USD 270.98+0.33%

Reliance Inc
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About company

Reliance Inc is a diversified company specializing in the provision of value-added metals processing and inventory management services. With a network spanning approximately 315 locations across 40 states and 12 countries outside the United States, Reliance serves a broad customer base of over 125,000. The company offers an extensive product line that includes over 100,000 metal products ranging from carbon steel, aluminum, stainless steel, brass, copper, titanium, to alloy steel. Beyond its core offerings, Reliance has expanded its services to include kitting, contract manufacturing, packaging, inventory and supply chain management, and storage solutions. This expansion is part of its strategy to not only meet but exceed customer expectations in terms of quality, service, and delivery times, often achieving just-in-time delivery within 24 hours of order receipt. Reliance's decentralized management model allows its subsidiaries to operate with a high degree of autonomy, enabling them to swiftly adapt to regional, market, and industry-specific conditions. This approach, coupled with a commitment to high-quality service and quick turnaround times, has resulted in a high customer retention rate, with over 95% of clients returning for further business. The company's role as a metals service center involves acquiring primary metal products from producers and processing them according to customer specifications, leveraging high-volume production to ensure cost-effectiveness.

Summarized from source with an LLMView SourceSector: Industrials

Net Sales and Tons Sold

In the third quarter of 2024, Reliance Inc. reported net sales of $3.42 billion, reflecting a 5.6% decrease compared to the same quarter in 2023. Despite the decline in net sales, the company experienced a 7.1% increase in tons sold from the third quarter of 2023, indicating strong demand for its products.

Profitability and Earnings

Reliance Inc. achieved a gross profit margin of 29.4% in Q3 2024. The company reported earnings per share (EPS) of $3.61, with a non-GAAP EPS of $3.64. This performance highlights the company's ability to maintain profitability despite challenging market conditions.

Cash Flow and Share Repurchases

During the third quarter of 2024, Reliance Inc. generated $463.9 million in cash flow from operations. The company also repurchased $432.0 million worth of its common stock, reducing outstanding shares by 3% and replenishing its share repurchase program to $1.5 billion.

Acquisition and Credit Agreement

Reliance Inc. completed the acquisition of FerrouSouth toll processing assets on August 16, 2024. Additionally, the company amended and restated its $1.5 billion credit agreement for a new five-year term, ensuring continued financial flexibility and strength.

Dividend and Business Outlook

The Board of Directors declared a quarterly cash dividend of $1.10 per share, payable on December 6, 2024. Looking ahead, Reliance Inc. anticipates a temporary weakening in demand across most end markets in Q4 2024, with recovery expected as the company moves into 2025.

Summarized from source with an LLMView Source

Key figures

-4.14%1Y

70.8%3Y

125%5Y

Performance

28.6%1Y

29.0%3Y

33.1%5Y

Volatility