Reliance Steel & Aluminum Co. Q2 2008 Earnings Call Transcript

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2008-07-17 18:56:23.0

Tags: Reliance Steel & Aluminum Co.

Question-and-Answer Session

Thank you. Ladies and gentlemen, the floor is now open for questions. [Operator Instructions]. Our first question today is coming from Timna Tanners at UBS.

Timna Tanners - UBS

Hi, good morning.

David H. Hannah - Chairman of the Board and Chief Executive Officer

Hi Timna.

Timna Tanners - UBS

Just, I really appreciate all the great detail on the call, and really I think what... I'd like to hear more about is if you could give us some more detail on the end market, I know you said that auto, residential, and appliance really were you're seeing weakness. So, you don't seem to have a lot of exposure than since [inaudible] reported a decline in volumes. I just wonder if you can give a little bit more even within non-residential construction, a little further breakdown of what you see happening?

David H. Hannah - Chairman of the Board and Chief Executive Officer

Sure. The... yes, we don't have really any sales at all of any significance of any type of metal into the auto industry or the appliance or the not high residential related construction industries. We do some thought processing however for the auto industry, actually we do it on behalf of the domestic mills. And we have seen some slowdown in terms of tonnage being cost us [ph] through our toll processing business, but at the same time our people there had really done an outstanding job replacing that tonnage with new business, really coming from other applications. So, the weakness, if you want to call it that, in our ton sold, which was down about 1%, actually less than 1% on a same-store type basis, it was about 0.6% or 0.7%. The stronger part of that is our carbon steel business. Actually, we've seen the largest decrease in the aluminum side. So? I understand as well, but aluminum has been... it's off a little more than 5% in terms of tons, first quarter to second quarter this year. So? and that goes hand-in-hand with kind of a slowdown in the aerospace side. It's still a very good. As Greg mentioned in his discussion that aerospace is still strong by historical standards for us, but certainly not what it was in 2006 through 2007. So that's... I don't know if that answers your question exactly, Timna, but we really haven't seen any meaningful reductions in the non-res side.

 

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