Wednesday, August 29, 2012

AEO 2Q12 Earnings 8/20/12

     American Eagle Outfitters released earnings for 2Q12 on August 20th, 2012.  They reported net sales of $740mil compared to $669mil in 2Q11, which represents an 11% increase year-over-year, and beats street expectations of $738mil.  Sales were driven by a 9% increase in comparable store sales, and an increase in the average selling price. The company's AE Brand, aerie and AEO Direct segments reported a growth of 7%, 13% and 28%, respectively, in comparable store sales.  An adjusted EPS of 21 cents marks a 62% increase in EPS year-over-year.  Gross margin improved 210 basis points to 37.4%. Increase in margin was driven by strong top-line growth, lower product costs, and a decrease in occupancy/warehousing expenses.  AEO opened 9 new stores (8 of which are outlet stores), in 2Q12, and also closed 8 locations during the same period.

     EPS estimate for the third quarter is between 37 – 38 cents, which is higher than EPS from 2Q11 of 30 cents.  For the year, adjusted EPS is expected to be $1.33 to $1.36 which assumes comp store sales growth in the mid single-digit range. Guidance is adjusted for the 10 cent per share 77kids operating loss due to the closing of that business. The sale of the 77kids business was closed late in the quarter, and is expected to cause an after-tax loss of $35mil, of which $9mil is expected to be incurred in 3Q12.

Monday, August 20, 2012

DVA F2Q12 Earnings 8/01/12 - (Ryan Kennedy)

     For the second quarter of fiscal year 2012, DaVita Inc. (DVA) reported strong revenues and EPS, beating Wall Street estimates on both metrics. Revenues grew 16% over the second quarter of FY 2011 from $1.66bn to $1.93bn, and exceeded analyst expectations of $1.85bn. The revenue growth is largely attributable to increases in patient-treatment volumes, with volumes increasing 14% from 4.8mm to 5.5mm, of which 4.7% was organic.

     Excluding one-time items, operating income was $326mm compared to $271mm, an increase of 20%. DVA continues to make strides in profitability, decreasing patient care costs as a percentage of sales by 200 bps, from 70% to 68%. The company reported EPS of $1.49, slightly above Street expectations of $1.47, and an increase of $0.32 over the same period a year ago.

     Management raised guidance on FY 2012 operating income from $1,310mm to $1325mm. Going forward, we have strong conviction in DaVita. The company continues to improve financially, and has favorable long-term growth prospects. End Stage Renal Disease is expected to continue to grow due to demographic shifts and changes in living standards, and DaVita is poised to capture market share in the fragmented international markets.

NVDA 2QF2013 Earnings

After the markets closed on August 9, NVIDIA posted its Q2 2013 results. The company reported EPS of 19 cents on a GAAP basis and 27 cents on a non-GAAP basis. Revenues came in at $1.04427 billion, and both EPS and revenue beat estimates of 14 cents for EPS and $1.01427 billion for revenues. NVIDIA outlook for the third quarter also topped estimates, with the company expecting revenues of $1.15 to $1.25 billion, ahead of the consensus of $1.09 billion. NVIDIA posted record Tegra sales in the quarter, growing them by 35.5% to $179.7 million. Tegra sales accounted for 17.21% of overall sales in Q2 2013, as opposed to 14.34% in Q1. Gross margin rose by 1.6% sequentially to 52%, while operating expenses dropped by 1.6% sequentially. Spending on R&D rose by over 13% to reach $281.193 million. NVIDIA's outlook for Q3 calls for GAAP operating expenses of $390 million, down sequentially from this quarter's $401.096 million in total GAAP operating expenses. Gross margin in Q3 should be down just slightly, to 51.8%.  The main thesis behind NVDA was that the company will be gaining market share in the mobile space. Our thesis remains intact and the outlook for the company remains positive

Friday, August 17, 2012

August 15, 2012 - TGT Q2

     Pre-market, Target Corporation (TGT) reported Q2 net earnings of $704 million, or $1.06 per diluted share, representing a 3.4% increase over the prior-year period and a $0.05 surprise against a $1.01 consensus estimate. Adjusted EPS, which omits expenses related to investment in the Canadian segment during the quarter, totaled $1.12, representing a 4.6% increase year-over-year.
Management attributes a Q2 U.S. Retail segment comparable-store sales increase of 3.1% to two main initiatives designed to boost sales, customer loyalty, and store traffic: the store remodel program and 5% REDcard Rewards. During Q2, operating margin was flat (7.2%) and SG&A expense as a percentage of sales decreased by 20 bps (21.1%).

     In regard to our thesis, Target's store remodel program and REDcard Rewards have proven to be effective sales- and profit drivers, as the Company has experienced 11 consecutive quarters of comparable-store sales increases in its U.S. Retail segment. Target opened 5 net stores with an expanded food assortment in Q2, and management expects to have updated over 1,100 of its general merchandise stores by year-end. During July, three CityTarget stores were opened in Seattle, Los Angeles, and Chicago, and the initial reaction from customers in these cities has been positive. In regards to TGT's expansion into Canada, the Company has already begun converting 7 former Zellers stores, and expects to begin renovating 38 additional locations in Q3. At this rate, management believes the Company is on schedule to begin opening Target stores in Canada in spring of 2013.

     For Q3, management expects GAAP EPS of $0.69 - $0.79 and adjusted EPS of $0.83 - $0.93. Guidance for FY2012 guidance was raised to $4.20 - $4.40 for unadjusted EPS and $4.65 - 4.85 for adjusted EPS.The market reacted favorably to TGT's Q2 results, as shares were +1.9% following the earnings announcement.

Thursday, August 16, 2012

Parker-Hannifin 4Q2012

     Parker-Hannifin reported 4Q2012 earnings on August 2, 2012. (The company has a fiscal year that begins and ends on June 30) For the quarter, the company reported EPS of $1.96, against the consensus of $1.91, while sales amassed $3.4 billion, which were flat year over year, despite 4% headwind occurring due to foreign exchange. The company was able to accomplish a major goal of achieving 15.5% segment operation margins, which beat management’s previously stated goal of 15% for 2012. These projected margin increases were a major part of the UASBIG thesis and will continue to play a major role in the appreciation of the security. The company was able to report stronger results, specifically in relation to Aerospace and Climate & Industrial Controls, historically the worst segment, as they improved more than 2% and 3 % year over year respectively.

     The company introduced fiscal 2013 EPS guidance of $7.10-$7.90, while street consensus has come in at $7.89. This parker estimate has a midpoint of $7.50, which includes a $.35 pension headwind. The street remains positive in relation to management’s guidance due to Parker’s historical trend of being conservative in relation to giving guidance (Initial FY2012 guidance was $6.70-$7.50, while the true value was $7.50).

     New orders for 4Q were down 1% year over year due to particularly weak results out of the Industrial International Segment, which fell 9% due to very strong downward pressure in Europe, where the company does have some level of exposure. This fall was partially offset by Industrial North America, which increased by 4%, Climate & Industrial Controls which increased by 1% and Aerospace which saw orders increase by 7%. 

Honeywell 2Q2012

     On July 18, 2012 Honeywell reported earnings of $1.14 a share, beating the street estimate of $1.12 set out by the 20 analysts covering the company. The company’s second quarter profit rose 11% as the company’s revenues were $9.44 billion, an increase of 4%, just under the projection of $9.56 billion. The company then proceeded to adjust expected revenues FY2012 by decreasing the range of 37.8 billion-38.4 billion from $38 billion- 38.6 billion. Despite this decrease in projected earnings, we see the company raising its FY2012 outlook to $4.40-$4.55. This represents a trend that we have been seeing across the street this earnings season. Many companies have been able to beat projected EPS, while underperforming in regards to revenue. This trend suggests a move towards greater efficiency and could mean the loss of jobs across America. CEO Dave Cote had this to say of the changes in projections, “Given the increasingly uncertain global economic environment, we’ll remain flexible, but also continue to invest in sustainable growth through seed planting in new products and technologies, geographic expansion and our key initiatives.”

     A global leader in the making of aerospace, building-control and safety products, Honeywell has received a total of 4 Strong Buys, 10 Buys, and 6 Holds according to CNBC. They have benefited from a steady increase in demand across all major segments. Their extensive work with Boeing generated an increase in their aerospace unit of 8%. We saw Honeywell sign a deal with satellite-operator Immarsat to manufacture equipment for airborne broadband connections, which will last 20 years, and could create up to $2.8 billion in revenues. 

Saturday, August 11, 2012

BSX F2Q12 Earnings 6/27/12 - (Ryan Kennedy)

     Boston Scientific (BSX) released second quarter earnings on July 26th for the period ended June 30th. The company reported sales of $1.82bn and adjusted EPS of $0.17. Revenues fell 4% from Q2 2011 on a constant currency basis, driven by eroding sales in the Interventional Cardiology and Cardiac Rhythm Management segments, but somewhat tempered by growth in the Neuromodulation, Endoscopy, and Peripheral Intervention business units. Despite adjusted EPS at the high-end of management’s guidance, the stock traded down throughout the day on weakening sales in the business’ two core segments.
     Excluding divested businesses, the firm reported revenues of $1.8bn compared to $1.9bn a year ago. Revenues from Interventional Cardiology, the firm’s stent business, saw the largest drop of 13%, from $652mm to $549mm. The Cardiac Rhythm Management unit, the firm’s ICD and pacemaker unit and also the firm’s second largest division, also fell 8%, from $544mm to $488mm. The CRM division has slowed on decreased procedural volumes, driven by a study in the Journal of the American Medical Association and subsequent Department of Justice investigations into non-evidence based ICD implants. Despite disappointing performance from the business’ two largest segments, BSX continues to have positive growth in its smaller units, which are continually becoming more significant parts of the business. The Neuromodulation unit, which produces implantable electronic devices used to control chronic pain, continued its strong performance, growing from $84mm to $91mm, or 10% on a constant currency basis. The Endoscopy and Peripheral Interventions units also saw moderate growth of 7%, from $298mm to $311mm and $189mm to $196mm, respectively.

     BSX continues to make strides in profitability. The firm increased gross margin by 322 bps, from 65% to 68%, as the firm continues its transition from the lower-margin Promus stent to the higher-margin Promus Element. After removing one-time items, EBITDA margin increased 22 bps despite increases in SG&A and R&D as percentages of sales, primarily driven by the increase in gross margin. On an absolute basis, SG&A grew by $6mm, while R&D fell by $10mm and EBITDA dropped $23mm. Boston Scientific continues to pay down debt and reduce interest expense, which has historically weighed on earnings since the firm took on $6.5bn in debt to acquire Guidant in 2006. The firm reported interest expense of $64mm compared to $73mm a year ago. After removing a $3.4bn non-cash goodwill impairment charge associated with the EMEA unit, BSX reported net income of $242mm or $0.17 a share. On a GAAP basis, the company reported a net loss of $3.4bn or $2.39 per share.
     Going forward, we are bullish on Boston Scientific. The company has been trading based on revenue growth in the CRM and Interventional Cardiology units, but there is more than meets the eye. Despite contractions in the two main business segments, the company continues to have significant growth in the Neuromodulation and Endoscopy units, which are now becoming sizable portions of the company, and should begin to have a larger effect on the stock price. The company continues to make strides in profitability and unload the debt levels that have suppressed the stock over the past six years. Overall the company is stronger and more financially sound, but needs a catalyst in the IC or CRM units to reawaken the stock and allow investors to focus on improved financials. The PROMUS Element, which has been brought to market but is still in its infancy, may be the catalyst needed to bolster Interventional Cardiology revenues. Aside from the Element, there are very positive new developments in the Cardiac Rhythm Management unit, with the $150mm acquisition of Cameron Health and its subcutaneous S-ICD device. The S-ICD device has the potential to be a $750mm market, and BSX is the only company that has such a device. Considering the firm’s improved health, its strong operating cash flow generation of $407mm, and catalysts in the Element and S-ICD, we are bullish on BSX and believe 2013 will be particularly strong for the firm.

Thursday, August 9, 2012

VZ Sell Thesis

Verizon has outperformed and came just shy of our $46 price target. We decided to cut the position in half for the following reasons:

-Verizon has outperformed since late April/May, largely due to a defensive shift in investor sentiment. The low interest rate environment has pushed money into “safe-haven stocks” like Verizon, which now has a 4.5% yield (this was much higher before the run up). 
-We still believe in the company’s thesis and reiterate its $46 PT, but would like to take some profits at this time because the upside is limited & as a precaution in case investors shift more into risky assets and out of high yield stocks in the telecom industry.
-In addition to a sector rotation thesis, there are some fundamental negatives that could cause the stock to pause: 
   -Customers viewing family share pricing as expensive could limit sales. Forcing them to get rid of unlimited data unless you buy phones outright creates customer resentment as well. Prepaid carriers are starting to make a push, with Virgin Mobile leading the way with the iPhone and other high-end smartphones 
   -Deceleration in FiOS volumes in video & data, absence of a new labor agreement could be a negative, & weakness in wholesales.

-Ryan Ranado & Joe Esposito

Qualcomm Earnings release

Qualcomm released earnings results on July 19th, posting EPS of 86 cents, which was in-line with expectations. They also posted a 28% increase year over year in revenues at $4.63 billion. Company guidance for the fourth quarter EPS of 78-84 cents came in slightly below the consensus expectations of 89 cents, due to lower projections in smartphone sales. CEO Dr. Paul Jacobs states that their estimates in 3G/4G device shipments have changed as they expect demand “to be more back-end loaded as devices are launched for the holiday season.” They saw margins drop slightly over the quarter, gross margins coming in at 64.4% compared with 64.7% last year, and operating margins at 30.0% compared with 31.0% last year. Sales of their 3G and 3G/4G chipsets have been driving their revenue growth as countries all over the world continue to adopt mobile platforms. They shipped 141 million MSM chip units, up 18% from last year. The approximate selling price of each 3G/4G unit rose from $226 to $232. With the gradual adaptation of 4G LTE handsets in developed markets such as the U.S. and Japan, as well as the overwhelming demand of smartphones in emerging markets Qualcomm is in position to benefit from these macro trends. One factor that shouldn’t be overlooked is the decline in smartphone pricing, which could negatively affect Qualcomm’s margins.

-Ryan Ranado

Verizon Earnings Release

Verizon announced earnings results on July 16th, they reported EPS of 64 cents, a 12.3% increase year over year, which met analysts’ expectations. They posted record highs in operating income margin at 30.8% and EBITDA margin of 49%. The wireless segment increased revenues 7.3% year over year, added 1.2 million retail customers; 888,000 of which were postpaid customers. The wireline segment saw increases of 2.5 percent in revenues, with 65% of revenues generated by Verizon FiOS. Verizon had a 3 percent increase in smartphone users, bringing in 50% of their postpaid revenues from smartphone customers. Verizon released its Share Everything plan on June 28th, offering customers unlimited calling, texting, and shareable data, increasing the amount of devices allowed from 5 to 10. The new plans offer cheaper pricing for customers with more devices, however slightly higher pricing for feature phone customers. They also had the release of the Samsung Galaxy S III which has been a top selling smartphone thus far, which will benefit Verizon’s margins if more customers choose to use that over the iPhone. Looking forward Verizon remains the leading competitor in the 4G LTE market, they have enabled customers to add multiple data devices such as tablets and broadband cards for very affordable rates, and their FiOS services continue to grow and penetrate into new markets. These key points will allow them to grow their business and continue to remain the market leader in mobile telecommunications.

-Ryan Ranado

Tuesday, August 7, 2012

LIFE 2QF2012 Earnings

Life Technologies finished the first half of the year in line with their expectations, and revenue for the quarter even came in a little bit higher than they expected at $950 million. Revenue growth came in at 5%, if the expected headwinds from a decline in their SOLID platform are excluded. Net income rose from 52 cents per share to 67 cents per share year over year and EPS missed analysts’ estimates by $0.01 at $0.96 cents per share. During the quarter, they repurchased $150 million worth in shares. Emerging markets such as Asia continued to drive growth, while their push into the medical diagnostics markets in Hospitals and clinics has also helped.
Life Technologies recently opened a plant in Singapore. This is a move that signifies their increased penetration in Asian markets. Life recently announced plans to accelerate the development of their Ion Torrent sequencer after meeting internal goals and is seeing a strong demand for it. On July 16, they acquired Navigenics, a company that can provide clinical diagnostic testing laboratories for life to test kits for its upcoming sequencer, showing that it will keep trying to push the new machine into the clinical and diagnostic market.
Looking forward, Life Technologies trimmed their year EPS by $0.05 to $4.00 on the high end, while remaining stable on the low end of $3.90. They also expect their total revenue growth to be more towards the low end of 2 - 4%. Life technologies has revised their projections because of a bleak macro situation in Europe and recent acquisitions to drive their Medical Sciences segment. Additionally, while there hasn’t been any NIH budget cuts recently, they continue to monitor the sequestration and budget news coming from congress, as a cut could affect spending in their academic market.
LIFE continues to be extremely bullish on their upcoming Proton sequencer, exceeding company expectations in both performance and demand from customers. They see emerging markets in Asia and the medical and diagnostics market in the US as primary drivers of growth, especially in the fourth quarter of 2012. They have taken into account macro conditions in Europe and continue to monitor budgetary policies in the US. We remain positive on the stock, but continue to monitor news from competitors’ pipelines, Europe, and budgetary policies in the US. 

-Jorge Perez

Monday, August 6, 2012

MetLife Second Quarter Earnings 2012

MetLife reported earnings on Wednesday, August 1st with operating earnings of $1.33 beating analysts’ mean estimate by 9 cents and our own estimates by 8 cents per share. Variable annuity sales were greatly reduced down 34% for the quarter and 6% year over year as MetLife works to balance its growth and risk. Operating profit in the firm’s Asia region was up 61% year over year as life insurance sales in Japan rose in comparison to the tsunami burdened Q2 of last year. Shares closed up 4.2% on Thursday and as of this writing are up 10.5% outpacing the SP500 by 8.8% over the same period.

                Management still projects an ROE of 12% to 14% by 2016 despite the low interest rate environment. In the event that 10-year Treasuries remain at 1.4% they feel they will still be able to hit the low end of that range. MetLife has thus far been very successful with its hedging program with a 1.4 billion derivatives gain tied to low interest rates this quarter and has multiple products that it can adjust interest rates on to adapt to market conditions.

                On the regulatory front MetLife’s application to complete the sale of MetLife bank to GE Capital is under review by the FDIC and management did not speculate on a timeframe for any action. The possibility of MetLife being classified as a nonbank SIFI still looms over the stock but it is unclear what the impact may be as the rules are not yet clear.

                Our outlook is positive as MetLife continues to focus on sound pricing and underwriting with appropriate levels of risk management. 

Sunday, August 5, 2012

Chicago Bridge & Iron 2Q2012 Summary

On July 24 Chicago Bridge & Iron reported earnings of $.74 per share, which beat expectations of 16 analysts by $.02 per share. CBI was able to report $1.3 billion in revenues against $1.1 in the comparable quarter one year ago. The company was able to report their strongest earnings in a quarter since the company went public in 1997. New orders for the company amassed over $500 million with growth on existing projects of almost $750 million, along with $600 million of smaller underpinning works spread across the company’s 3 business sectors. The company confirmed projects FY2012, with new orders totaling $5.5 billion to $7 billion, and have narrowed the range for revenue to $5.4 billion to $5.6 billion, and earnings per share of $2.85 to $3.05.
                The company has developed a strong and durable level of backlog over time. With over $10billion in backlog, we can be assured of work for the company over a long period of time. To start off Q3, the company assured a project in New South Wales, Australia which is worth over $225 million, adding to the strong backlog that already exists.
                CBI CEO Phil Asherman focused heavily on the performance of Lummus Technology, one of the strongest segments within the company. The group was driven by new awards, creating $300 million and producing 25% on income from operations. Lummus technology will continue to be a major part of our thesis on the growth of CBI and what will drive further appreciation. Also, on a side note, CBI was declared in the top tier of safety, considering their line of work and the number of hours worked by the company’s employees.
                Chicago Bridge & Iron was able to return $23.4 million to the shareholders, which was $18.6 million in stock repurchase and $4.8 million in quarterly stock dividend, while the company maintains $552.8 million in Cash and Cash equivalents. This quarter marked the 4th time in the past 5 quarters that Chicago Bridge & Iron was able to beat on their earnings estimates. Since the announcement, the security appreciated by $4.29 per share or 11.78% through Friday July 27, 2012.
                On Monday July 30, 2012, rumors emerged about the possibility of Chicago Bridge & Iron purchasing the Shaw Group which is a provider of technology, engineering, procurement construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services. The supposed purchase price would be $46 per share, which is a 72% premium over the Friday close. This news was received poorly from the investing community as the shares traded down 14.6%
                The deal will be for $3.04 billion in cash, which Chicago Bridge & Iron will finance with cash on hand and $1.9 billion in debt. The acquisition is expected to close in early 2012 and will add to per share earnings moving forward from that year. Chicago Bridge & Iron CEO Asherman said of the deal “We will become fully diversified across the entire energy sector, from power generation to LNG, from refining to gas processing, from offshore to oil sands and beyond. “ Despite his optimism, CBI is still purchasing a company that recently reported a loss, and does not have a strong financial history, which is leaving investors uneasy about the future of the company.

ATI reports 2Q2012 Earnings.

ATI reported Q2 earnings of $0.50 per share, this missed consensus estimates of $0.54 per share. Revenue was reported as $1.34 billion driven by a weaker environment in manufacturing segments. Aerospace had a weaker quarter, which appeared to rebound toward late June and early into July. ATI’s diverse global strategy helped keep robust earnings during a tougher quarter for demand in certain segments.

Aerospace and defense made up 31% of ATI’s sales during the quarter of $851 million. Sustained jet engine demand helped the segment during the quarter.

High performance metals, which make up 18.1% of sales, increased 10% year over year and became a more focused part of ATI’s business model. This can be contrasted with Flat-Rolled Metals, which make up 6.8% of sales, decreased by 40% year over year. Engineered products contributed to ATI’s shift in business focus over the past year, makes up 9.9% of sales, increased by 94% year over year.

Our current outlook, after earnings, for ATI is positive. ATI has held up through a tough environment by adapting their business model to changing customer demands. While ATI remains under pressure from macro economic troubles, the stock price appears to be towards its relative bottom point. Most analysts on the street are wildly bullish on ATI, which reassures us of our Buy rating as well. As a recovery takes place, ATI is well positioned to capture renewed manufacturing demand. A true example of this was ATI’s 5.16% rise in market cap Friday, August 3rd 2012. This was sparked by widespread upward market gains following a better than expected July non farm payroll report.  This is an optimistic sign for the manufacturing industry, ATI’s customers, and therefore ATI’s bottom line going forward. 

Wednesday, August 1, 2012

Reliance Steel Q2 2012 Earnings

Reliance Steel & Aluminum Co reported its financial results for the second quarter and six months ended June 30, 2012. For the 2012 second quarter, Reliance reported net income of $108.8 million, up 10% from 2011 second quarter net income of $98.7 million, and down 6% from 2012 first quarter net income of $116.2 million. Earnings per diluted share were $1.44 in the 2012 second quarter, up 10% from 2011 second quarter earnings per diluted share of $1.31 and down 6% from $1.54 in the 2012 first quarter. Sales for the 2012 second quarter were $2.21 billion, up 8% from 2011 second quarter sales of $2.05 billion, and down 3% from 2012 first quarter sales of $2.29 billion. The 2012 second quarter financial results include in cost of sales a pre-tax LIFO credit, or income, of $7.5 million, compared with a pre-tax LIFO charge, or expense, of $25.0 million for the 2011 second quarter and a charge of $7.5 million for the 2012 first quarter.

David H. Hannah, Chairman and CEO of Reliance, said, We were pleased with our 2012 second quarter results which were in line with our expectations, although general economic uncertainty in the marketplace along with declining costs for most all of our products negatively pressured both volumes and pricing. At the operating income level, our 2012 second quarter was up 1% over the 2012 first quarter, and up 12% compared to the 2011 second quarter. Underlying demand slowed slightly from the 2012 first quarter, but still represents solid improvement when compared to the 2011 periods. The declines in the costs of our products were supply, not demand, driven, as underlying cost inputs at the producer level decreased, imports were plentiful, and domestic overcapacity persisted.

We continue to see strength in energy (oil and gas), aerospace, farm and heavy equipment, and auto (through their toll processing business), and expect continued growth in these markets. Additionally, they grew further with our 2012 acquisitions of National Specialty Alloys, LLC (effective April 3, 2012) and McKey Perforating Co., Inc. (effective February 1, 2012) plus two strategic asset purchases. RS grew in specialty products and high value-added processing, as well as expanded into Australia, Hannah continued.

Effective April 3, 2012, the Company further extended its footprint in the energy market with the acquisition of National Specialty Alloys, LLC, a processor and distributor of premium stainless steel and nickel alloy bars and shapes based in Houston, Texas. Also in April, the assets of the Vonore, Tennessee Worthington Steel plant were purchased by the Companys Precision Strip, Inc. subsidiary, which expanded their toll processing network into that area.

Effective June 30, 2012, Reliance, through its newly-formed subsidiary Bralco Metals (Australia) Pty Ltd, acquired substantially all of the assets of Airport Metals (Australia) Pty Ltd, a subsidiary of Samuel Son & Co., Limited. Airport Metals (Australia), based in Melbourne, operates as a stocking distributor of aircraft materials and supplies. Terms were not disclosed.

-John Astarita