RS - Earnings call transcript Q4 2024 | Reliance Steel & Aluminum Co.

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Operator

Greetings, and welcome to the Reliance Inc. Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Kim Orlando with Addo Investor Relations. Kim, please go ahead.

Kimberly Orlando

operator. you, Thank thanks conference and Full of for you XXXX Good to to discuss our call results. and Reliance's joining financial morning, all Fourth year Quarter Officer; Lewis, I by and Officer. Arthur President and President Steve Vice Officer; Cook, Senior Chief and Chief am Operating Executive Karla Chief and joined Ajemyan, President Vice Executive Financial

release read this the in of our issued part statements in our website of recording this of section included that note call release. A and reconciliations are reconciliation made earnings disclosures investor.reliance.com. yesterday will the the Please it Investors our all included statement be numbers non-GAAP adjusted earnings teleconference. posted on to of forward-looking at the applies The during

Karla of Lewis, President now will I and to Reliance. turn the over CEO call

Karla Lewis

morning, again in and once smart us profitable strategy our strong price on in well same-store Full Year model all a grew our for earnings Good discuss bolstering Fourth market. Reliance we Kim. the XXXX above in emphasis fueled tons challenging resilience Collectively, you our results everyone, businesses Quarter and joining our falling thank demonstrated as shipment our growth, levels XXXX Through and to today of Thanks, solid environment. financial execution industry a results.

tons Importantly, sustainable our annual strong our were profit we able delivering XX.X%, to squarely within range. shipped a margin also while grow full of year gross

$XXX million both our sales Additionally, we net geographic approximately in processing successfully acquired companies of and existing new capabilities adding and integrated an markets. XXXX, and footprint annualized X on and basis broadening in

and value-added prices. of the growth strategies, helped collectively the reflected of processing strong targeted capabilities, earnings impact diverse pricing our non-GAAP which served, XXXX Our share metal of $XX.XX per end declining expanded markets discipline mitigate benefit

thank an job each cash profitability from while to value in other safe. effective delivering who billion. did to our our of operations history flow importantly, annual the XXXX, management highest incredible customers I'd capital of like keeping amazing entire to family our teams companies in $X.XX Our Reliance's led third across and working more most

approach XXXX, in deployment record $XXX of million in We our our X% in $XXX and resulting stockholders. outstanding repurchases, year-over-year in to balanced in and disciplined shares expenditures, maintained reduction million in million to $XXX share acquisitions, a a $X.X capital capital billion investing dividends returning

calendar Our capital the $XXX of expenditure approximately cash inclusive $XXX prior with to million, budget from total $XXX for an is XXXX expected million year carryover million projects years. of outlay

remains IPO, we businesses to bringing acquisition our I pipeline acquired active. acquisitions and X XXXX, in robust us our since XX As and XXXX mentioned, completed

of a roles I and I'd Senior various we recently Planning as responsibility, XX President, was like Before XXXX. XX, of having served Strategic Programs, Brenda has been to Miamoto February highlight conclude, Vice with to our announced for President Reliance yesterday. on Initiatives. Vice in most years, few corporate promoted developments Brenda increasing Corporate

roles. Ramsbottom, November wish Industrial In appointed we Scott the Reliance new experience years' in best Information CIO Scott President Vice Distribution Chief of with than was and both a veteran XX, XX them addition, more XXXX. their is Officer effective

growth promoting and disciplined and people enhancing effectively sustainable we of both our working and our annualized an returns to strategy, day stockholder practices companies. ahead best profit keep look increased capital, of to striving expenses our managing within gross family increasing priorities and on our processing margin through growth promoting of maintaining smart our safe As capital our XXXX, deployment throughout capabilities, profitable our our centered and XX% sharing estimated collaboration strategy, XX%, are volumes every to maintaining value-added balanced range

market the our positioned capability to and XXXX business in end to improvement excited to both continue about across we're have the any from While our participate the serve. other your in potential arising center, macroeconomic uncertainty and markets you well grow today. many Thank including persists, that we and time capacity electrical and all broad manufacturing that and demand many military, exist, opportunities grid, network data for general infrastructure, diverse

the demand over review and to turn will Steve, trends. our I'll who pricing call now

Alexander Hacking

morning, Karla, like I'd begin to Thanks, gratitude for finish the my the and expressing and to Reliance strong everyone. safety operational and a commitment ongoing their year excellence. for good to entire team by to

our trends. to turn now I'll demand pricing and

decreased surpassing tons of down our fourth the sold Our compared quarter XXXX, X% to outlook to quarter of third X.X% X%.

on the sold by quarter XXXX, basis same-store tons to X.X% X.X% quarter X.X% as year-over-year However, significantly decreased compared of the fourth center MSCI. the industry's a fourth increased outperforming reported or service

sold For year, surpassing the of X% basis, X%. industry-wide decrease MSCI and increased on or X% tons our the full a same-store

Underlying demand manufacturing sectors, end aerospace construction, markets, key remains certain solid automotive. including nonresidential and in several

the We industry-leading growth while and with acquisitions. by customer business pleased every share we group gains strategic are and model, nearly product organic profitability made contribution investments from market year across in our and diversified relentless challenging our a maintaining service driven

total Carbon product steel aluminum price third within ton to declined quarter $X,XXX start to fourth under to average but steel pressure, XXXX, of in decline. fourth per the X.X% remained and expectation the prices compared of stabilize X.X% Our selling stainless a quarter. prices quarter our X.X% saw we

products of selling significant XXXX compared the end outperformed products, markets sales turn fourth of shipments in of roughly an lower construction X/X beginning the plate tubing, both sell year-over-year growth nonresidential which impact quarter substantially of which industry mitigated year steel sales products had trends QX full structural to XXXX. some we and construction. on and and will XXXX, average into shipment I All represented prices. X of mainly market our our overview Next, nonresidential and of to Carbon within notable with key

to for well the and contribution projects construction as supported acquisitions. energy including nonresidential funded our market, solid data center related exposure infrastructure construction from projects as our diversified did heightened and Our infrastructure publicly products recent demand

machinery, consistent products compared Our military, to the quarter total were XXXX. Consumer strong in and full increased and remained rail in And of an showed sales represented which declined Shipments XXXX. the diversified year-over-year, our of with shipbuilding the demand fourth X/X Industrial products in general manufacturing year and improvement is roughly quarter. QX highly which fourth XXXX also industries. business, of geographies, across XXXX

Heavy agricultural the demand experienced sector XXXX. equipment, weaker particularly through in

XXXX, tons Our in in manufacturing product sold. stable short-term are applications, which levels. toll industry and fourth a through aerospace dynamic of We diversified market uncertain Demand and full environment. supply processing challenges. shipping advantage products our primarily remained comprised and the operations, our general key chain both of at and quarter stable the Demand sales. commercial XX% Aerospace was our despite the space highlights outperformance defense-related and aerospace to compared programs automotive demand QX service across year production our model to XXXX business groups, not approximately of included strong for

QX XXXX and in saw X.X% which tolling remained in our investments both the fourth increased and Our processed quarter U.S. industry inventories tonnes due excess full ongoing of in X% to fourth represented business the increase quarter healthy from XXXX with sales, of restrained our from X.X% Mexico chain. demand shipments the approximately year the to the Semiconductor and capacity. supply

whole, market gains, the strength in remained share in subdued and key end markets certain On with pressures markets. counterbalancing demand steady relatively

to markets release and resilient markets. and business to all refer through monitor additional that diversification. earnings proven dynamic commentary Please to model confident product Reliance landscape policy trade remain and continue our our We for end our the excel positions on

Reliance's scale a execution, extraordinary strong makes sheet attractive of proud our We which unrivaled team's all industry-leading of our our enables very and continued partner balance mill highly market conditions. are to suppliers performance. us

product service. of value of We our breadth customers our existing continue offerings, value-added the business recognize reliability and who from new and the quality to win depth new processing capabilities and and

now results over I turn and to Arthur will the to review our call outlook. financial

Arthur Ajemyan

Steve, and call. thanks, today's Thanks, joining everyone, for

per stronger fourth performance operating rate of when due improved the to better-than-expected rate diluted per reserve and income excluding true-up gross profit earnings an non-GAAP underlying our impact to $X.XX. LIFO year-end nonrecurring along fourth $X.XX unfavorable an net share of than to with in our More levels income an quarter shipment and Our guidance for share. of earnings shortly. tax compared the used diluted of per that true-up adjustments. assumptions $X.XX tax quarter anticipated of Overall, LIFO year-end $X.XX on share the items, impact was included margin non-GAAP

quarter quarter fourth expectations, how our margin was costs in and leading industry sold On than gross hand. measure inventory a levels non-GAAP our shipment in line alignment tons were we the a our all from again across better XX.X% price basis, the replacement XX.X% average we on to day-to-day selling with in anticipated, which the basis of FIFO reflecting fourth better our is third in same-store improved decline on While performance, nearly on our operating sequentially quarter, our outperform us sequential to once products. profit

was within XX.X% profit As our full gross sustainable Karla year margin range. of mentioned, annual our

of stemmed the processing the and pricing consistent of strong which metal warrants margin value-added gross margin line. and a irrespective underlying Our of price our profit bolstered capabilities environment discipline and pricing bottom gross premium declining on profit our a impact

year were as on we and in keep a year-over-year tons X.X% We business XX% relatively X.X% we More processing with able full side. to metric distribution sold the further performed orders. in grew our our we of XXXX processing For our value-added same-store specifically, on of XXXX, both XXXX. by consistent approximately this processing grew and the

our recognition LIFO the million largely million profit due of expense third declined annual XXXX income $X.X compared gross margin compared original income $XXX million quarter, to annual $XXX.X LIFO in to XX.X% LIFO estimate. XX.X% too. as million of $XX of income This quarter fourth from as Our in the the to of resulted to

the which XXXX. trues in interim income per and stainless annual long as These alloy call, from earnings inventory quarter steel based XXXX ultimately last such our trend changes certain quarter and and high-value ton the LIFO will inventory the specialty on discussed in year-end receipt our adjustment into fourth were cost product impacts LIFO up factors products, by mix. of lead fourth for As estimate shift our levels on times heightened LIFO

we normalization of rather an reflects from for metals pricing estimate of specialty It's Accordingly, expectation XXXX, important of $XX the estimate inventory and stainless LIFO this carryover XXXX. that full million. note declining in steel the income of to year approximately XXXX than product

by in December therefore, of million, of XX, XXXX, mitigating future balance the $XXX and, declines which LIFO income impact results benefit to sheet As operating our LIFO further recognizing was on prices. period metal potential available the remains reserve

non-GAAP consistent increased or million SG&A quarter our with side, year-over-year wage general expense expense lower same-store incentive a lower the to offset X.X% by $X modest due inflation, fourth mainly profitability. On compensation

or incentives reminder, our than inherently model rightsizing million by profits a normalizes Sequentially, down. our SG&A $X expense trend X%. less As non-GAAP expenses down was as same-store

one operations efficiencies. into $XX.X We also of incurred million of impairment with streamline charges existing associated in operating the to QX of our consolidation facilities

and balance our sheet address flow. now cash I'll

and million $X.XX strong We respectively. continue the fourth in to generate cash from and billion, operations $XXX.X both year full flow quarter at

we levels, our lower XXXX declines profitability. While cash an through helped December to $XXX.X XX, work of million at per enabled $XXX additional This the in quarter in paid stockholders XXXX. million Year-to-date, us average our share. in our in repurchases offset expenditures, resulting capital of relative average $XXX.X shares share of capital to in reduction have release total higher share, capital million cost shares repurchased $XX.X dividends $XXX an in $XXX in cumulative fourth an cost million since in put working per to X.X% and XXXX, at outstanding to

share We share billion recently October plan remaining in refreshed under XXXX. repurchases $X.X repurchase additional have existing we $X.XX for that billion our

our significant favorable also liquidity providing debt-to-EBITDA remains allocation position with net priorities. capital ratio a leverage executing X, less of to continue Our than

X% the domestic sold few I'd policy. to anticipate despite trends the majority consistent We tons quarter outlook demand up XXXX, our X.X% first of like quarter first first be continued across a estimate our attributable of We with to discussing and X% modestly compared of the quarter and in XXXX. from of X% quarter with X% X.X% to spend to up the growth. markets to fourth the improve for about in to XXXX quarter same-store end now international our will uncertainty the to first seasonal moments

compared to the expect our On sold be fourth ton quarter. relatively to price the we flat selling side, average per pricing

profit of as alignment XXXX margin on cost the to hand gross replacement quarter to of FIFO in inventory continues first our will improve. anticipate We improve continue costs the and

these share quarter disruption Importantly, steel either to range of this for and we Based to steel, non-GAAP carbon on demand XXXX. aluminum expectations, market first pricing. significant diluted product stainless per the earnings outlook policy anticipate trade negative or $X.XX the $X.XX in assumes positive and no of

our for prepared Thank questions. for time concludes your remarks. Operator? and and participation, This now you your we'll again open

Operator

Research [Operator first question Instructions] Englert coming Martin Our from is from Seaport Partners.

Martin Englert

demand in activity bit on in wanted seems U.S. and the metals how and rising gains on thoughts in cyclical U.S. due it organic I to recovery quarter-on-quarter recent would and pull I picking a seasonal metals. attribute versus to be in your demand weeks. possibly curious little dig potential forward much activity, would an is market to to you like prices and tariffs steel for hear up steel

Karla Lewis

happening we speak our were other our overall, volumes steady in what's performed to most people at for really markets. Martin, very through our growth, companies, We can't at end major were but of XXXX well. pretty Reliance, looking

demand. think we As overall, for we commented higher there's to other in were trends. but that QX. markets think We good in seasonal some seen subject a pretty growing, the further more. particular, rate I in up the our steady construction. But we necessarily we activity We at for continue industry maintaining remarks, to as growing pick into nonres look momentum to than a there, we've not saw XXXX move and little

Stephen Koch

Yes.

to And bad In XXXX, pretty countrywide. January our strong. spite in that's coming pretty Martin, much activity that, weather of even into was addition some

as So price the forward that their far in the they before we March, customer make increases. as a pull little of to have get bit goes, trying sure impending activity, seen tariffs material with

the we're quarter. pretty optimistic first about So

Martin Englert

Your into be you response you're the about developing that momentum may moving anticipating comment expected for? end through specific potentially What XXXX. that as markets or

Karla Lewis

infrastructure final overall to see on there. We sector flow, think again. potential and more We little just the maybe of the standpoint, that to we'll the playing is to start basis to related Martin, people there electrical there's regular that news the general does a we some center, will from lot see of especially There's everyone field permitting once right and more continue extra data certainly, had think a more parts as starts and different going, It's asked an efficient manufacturing the commented, you strength funding of Hopefully, improve. of could But be but because Yes. a grid. a understands infrastructure money on everything now buying process. tariffs. about, of Steve uncertainty

different business different through many many Reliance many so And that companies of different products. type in ways touch

positive pretty about XXXX. we're So

Martin Englert

producers. curious, and and the to seeing company. you're market. what there's you of the you evolve could maybe factors in Okay. spending then in today's policy question, I for anything of environment out recent work a alluded the times you're of overall understand from I appreciate that. walk would U.S. like domestic large side upstream that the reduced I'm availability. buyer often the some if and couple positive and seeing a or changing of probably at front this had the also, you what And are parts tariffs, the weeks? steel you're buying in lead negative through maybe there understand could And to in line metals and with But supply I to when

Karla Lewis

Yes.

positive support we the have turning U.S. our inventory, coming import As different well, environment, also and trade look prefer there policy be to would our been I see helps pricing you We the what on our in products the some which us won't U.S., inventory the prices into currently until inventory. pricing We've generally domestic steel see We carbon We've we long-time a is in has already to some but here U.S. impact been aluminum as amount of it positive we anticipate potential enacted upwards. movement We Historically, that mills It well, reduces the from well we for We we receive some is when mentioned, buyer. our tariffs have do or view. increase But start operating upwards movement we're upside manage of us. especially the do the to the Martin, think material side, that which front. very which been on mean, do. positioned all again. on know, seen seen in

Martin Englert

exiting the results strong the on Congratulations underlying year.

Operator

question Jancic Capital Next from from Katja coming . BMO Markets. is

Katja Jancic

that organic the does by that driven on initially of to Is some on focusing mentioned Or going things more growth? increasing will you X include in also 'XX that you volume. acquisitions? be Karla, is be

Karla Lewis

we we where our lot we that than take X same-store side people organic getting but and more the half year, those -- don't that's environment we both talk off costs the maintaining adding our tons volume, the in that but pretax which also grew we and more with smart profitable and our we a be was out executed a the in was the acquisitions order, of volume additional some the more growth, take offsetting in growth, XXXX, have. about income XXXX, at declining on bump have would had from while will go It very a higher we of every of in up price those saw margins completed earnings and dollars as especially after our of going XXXX also is your helpful be volume in earnings well increased extremely to think little accretive little

Katja Jancic

And during in think add you environment this processing? what domestic -- drive I interest increasing the is COVID we on processing another protection like interest maybe value the on when higher have processing, saw as we Could policies that in where value-add saw increase. the value-added

Karla Lewis

do customers the doing effectively doing part where and for last few to we're could, I cost more than certainly, a more serving different of lot we've same be in-house. a that them of before our in efficient many of even our customers. processing change potentially if less are they've mean reshoring lot it companies But happening That's it type Reliance of able reshoring, a of that's that with been oftentimes seen out, years. cost they're there's done being just looked the offshore. what drive the trying they because realize at customers, to internally,

that So more. could it trend we yes, customers. up with had the seen potentially already And our trends then, reassuring drive a from certainly

We have back of business us, come has the come or and some U.S. when to seen our from back come ever, customers it's Asia to

them And we we on say, continue us distribution grew So to that activity. our invest with that of could in did tons, we of And basis. of will increase drive we orders to though, our did ready profitable XXXX, processing some on to to business. of are number do our the able continue acquisitions. especially it I but also higher. need the number of side and a more whatever see in customers do we for expect just to the

Arthur Ajemyan

And Katja, to products at would into themselves -- to that actually the that than we a that. general add sales manufacturing those for our higher processing products. ship end market, I much and to end other market general the value-added rate lend

we manufacturing pickup sales a as see well. So picks general activity in value-added up, our should processing as

Operator

Next from question coming KeyBanc Gibbs Markets. is today Capital from Phil

Philip Gibbs

expenses operating you at looking but in up volumes about your have had tolling, gross uplift year-on-year, X% FIFO a profit. in I'm ex So did you decline X% a

you're ton years, supply your excess just to of either be going maybe pretty historical relative costs some grow showing Or maybe to and/or in into? operations there's leverage some So chain have out? so lean to business opportunities sticky. is that they are not Any still -- to some to within that a going through the inflation

Karla Lewis

certainly, are inflation. so up, Phil, costs wage

fair employees. We to continue pay our to to wages want good

inflation. some have wage So do we

that because Some FIFO lower of talked of down you the is comp about. our profitability incentive

field new have out. time We general ways a some instances we're cost people we maybe more employees But work at in on in know time, out a to are take who to at do environments. where in potentially to employees also, to retain We who to when how are to good carry same are all out, training some have costs now. always longer folks but our our we trained, safely bringing need take our few looking of the looking the ways for

some increase. So we're but can, there reacting has certainly, the best we been inflationary

Arthur Ajemyan

pretty add At we've to been a that. the X operating able to And the in steady. level, years so at high $XX ton last cost per would keep I roughly But In as really to, we're structure. that trying grow in part to ton of $XX spoke initiative, into growth. point, And to a that smart Karla also cost your to range. our the profitable

and our get bring So business, trying as expenses. to additional increase efficient we're more not we

growth, margin So of smart of just kind an a perspective not perspective. that's part but expense the from profitable from

really So to with -- looking good able and on we're going we've front, been to that forward. have that traction some strategy continue get

Philip Gibbs

talk to prepared in speak about -- you you mentioned in remarks, the it know I can CapEx maybe And don't if cash but XXXX.

Karla Lewis

current into $XXX still that this estimating roll projects We're year. new from some we carryover is our budget that have projects million, for Yes. but year

$XXX So to we're estimating million million of year. $XXX outlay cash this

Philip Gibbs

about semis, infra. and then soft you historically, I about And as having more thought guys semis being you talked

through but over next of So semis comments more and there's some still what know, to I few plate don't you aluminum that build-out seeing maybe the seem occurring. you're qualify -- business, there maybe expect what the be production that's years.

Karla Lewis

Yes.

would I as think certainly, that when you're we're side industry, on still I the on plants. on choppy. lot new been participate like where say long a It's referencing build infrastructure U.S. pretty we the of here bullish semiconductor the building they're especially of term, in going the

pretty it's little they're project busy of different project I be whether One of internal companies, and other will semiconductor a issues think whether all another heats stops and dealing sudden, that a then up whether it's workforce, with. permitting, bit. it's the manufacturing that

hasn't as active. build, in it we So are smooth or steady of participating a are that but a been projects the

Operator

from Next is Sachs. Goldman coming today Harris Mike from question

Michael Harris

unfavorable could, was I I being the sold roughly mix Or this an pricing? be flat to that conservative more around that optimistic there's for guess to I up give that clarification all to quarter in just And conservative I X% cap a a side point? considered. just surprised but guide X%, you bit first X% we're is because If the little at wanted not around time been pricing more could pricing, X% maybe parent

Karla Lewis

certain the yes, pricing. the some from a view. have we conservative be We So tariffs, announcements, price those There little in in market. not at Mike, time for but sometimes for be could baking been to increase But typically sometimes point. not on positive think anything products. effective it we're takes But it a take this really

that's we And the guided be that. will some So the way to there upside for hopefully, quarter.

Michael Harris

Okay.

about expectations on for for quarter, should days we Okay. That's just first speak working the and fair. hand. inventory capital how then perhaps your And to think

Arthur Ajemyan

Mike, can you happens and in seasonality you typical X at into what levels last years look as in and going look higher to go building Yes. business, releases. shipment our typical the QX. back seasonally some trends And QX, up from up have QX, QX at just X, end typically and you QX building working working capital. have you And capital are might then then end you the and QX, QX,

it the of expect typical sort with to consistent would and those historical patterns. that's seasonality, be seasonal So we

Operator

Next question from Hacking Citi. coming Alex from is

Alexander Hacking

Yes.

tariffs to back turning Just again.

good what's is you Mexico? your you. -- pricing generally border or higher for coming Canada remind can have any from us the mentioned exposure do But You you material just to across

Karla Lewis

in locations all they countries in certainly are buying have America, North typically we we X domestically. -- So

a does to from Mexico import toll the metal in Our processing company customers have license U.S. their for

fairly there We're about be XXX-mile impact shipping international Overall, are small typically within business. part -- We're most a our there. our could the U.S. radius. So of is some within of locations typically

across we disruptions that don't a business so we of see borders. in flows but our part impact that could And anticipate significant the some

Stephen Koch

investing supports an that into supports Yes. with overall companies market strong we XX% U.S. are with And disruptions think XX% since are see the that billings domestically and higher infrastructure. Carla. some prices We Reliance, agree our steel I billions dollars of We'll sourced. to

a But So deal spec we positive. overall, key basis will with some we're disruption. tariff on very

Alexander Hacking

XX% correct? hear is I Okay. Did business of And you just to your about clarify, that plus domestic. said

Stephen Koch

Domestically Yes.. sourced.

Alexander Hacking

on you right of that guess, FIFO with that margin LIFO in steel just first should create continue I I probably and guidance? that's baked mentioned the for generally kind metals does into a move the rising gross XQ. quarter and that headwind -- assume side, in accounting prices then the direction

Arthur Ajemyan

Yes.

our it's So LIFO that we're decrease the alluded not to And prices year. in remainder or to guided I for as think to expecting income. the that cost we remarks of we

average with improvement with to that gross extent and side But of from better additional getting the uplift, hand, pickup there's do some meaning alignment cost you're margin and that alignment, some costs selling specialty profit that on the to right any alloy products. that. on . will generally price related some then to So be steel replacement was stainless there speaking, more the margin timing has costs

Operator

question next from Gibbs Capital follow-up Markets. Phil from Your a is KeyBanc

Philip Gibbs

Arthur, maybe investment more credit. can of you imply it's the of what I there, what lot commentary know you think mechanically, it the kind the out explain But the pretty bit I a and mean, community for -- it little just understand I but I decently, benefit implies, I think inventory. targeted business? the does actually alloy your around stainless a of that within LIFO

Arthur Ajemyan

Right.

LIFO calculation. mix LIFO So does the and cost per affect time changes

a what case, was that -- lag something hand. stainless your that costs that's happens selling in product And atypical longer lead create prices So between essentially we between times the experienced. on really and specialty

the So had system have inventory would that lead normal, -- lot that case. but the wasn't a been through of times gotten flushed and

LIFO for it is pushed LIFO XXXX Effectively, income XXXX So million estimated from of income really, timing. just into is $XX what we're saying 'XX.

LIFO of So if the that component essentially of guide, flat LIFO. we're the remove you saying coming out gates, saying out we're

So at for our right? we year. on are factoring as the guidance of expect point impact this of be much our cost. in in either the necessarily prices tariff we not prices our they or we're And kind remainder selling now on said LIFO any essentially X, where We're to saying pretty guidance,

Philip Gibbs

within less of inventory time places like extent, lesser that to related maybe lead that more good longer of the aerospace and falls? the the is that you the So defense material item for specifically, is that of a that there? material, have I 'XX in embedded end versus would I of at pricing beginning? what's is you'll have that to a pocket hand Or the mean, on expectation the bit that of imagine expectation implication

Arthur Ajemyan

nailed correct. it. you Absolutely, That's

end to that would expect by year. less this of have the we of So

Karla Lewis

products, lead started specialty on of the Yes, that come from, mills in because up items. of on their some Phil, caught for production those that kind to products, they of times the acquire we some those

to of same here. aerospace, of the a And at a as more At time, were as so they everyone the those year. some And knows, were the home disruptions lot shipping products. us. end for referenced, there you is

So our airplanes, into increase chain. supply that see of move out build as rates we inventory . from customer should -- the on inventory

Operator

the further turn session. to I'd our any over end to or like back reached floor have for We of closing Karla question-and-answer the comments.

Karla Lewis

Hollywood, call they you you Conference and and there. in Reliance. with we our Critical like . JPMorgan's please to close XXXX a Metals of Conference to every All our many And conferences: for Thank New I'd support for all out the in upcoming of we each your everyone you. of to thank do joining City. BMO's we'd right. Florida Thanks all And meet Materials once there. to hope for at and that first, be Global we'll York also and safe other Industrials everything Reliance employees And again, continued keep day, today like call, few Mining out presenting of remind again before

Operator

conclude Thank today's teleconference. you. does That

your and time, You you thank at disconnect participation wonderful a line this for day. may We have your today.

Reliance Steel & Aluminum (RS) 20 Feb 252024 Q4 Earnings call transcript