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Reliance Steel Names James Hoffman as COO and Executive VP

Reliance Steel & Aluminum Co. RS said that James D. Hoffman has been promoted to the position of Executive Vice President and Chief Operating Officer (COO), with immediate effect.  As Executive Vice President and COO, Hoffman's responsibilities will be expanded to include all of the company’s operating businesses. Hoffman will continue to report to Reliance Steel's President and CEO, Gregg J. Mollins.

Hoffman served as Executive Vice President, Operations maintaining responsibility for the company's carbon steel and alloy operations, including the energy, auto and non-residential construction industries.   

Reliance Steel’s shares rose roughly 2.3% in the trading session on Feb 29, closing the day at $60.89.

Last month, Reliance Steel released its fourth-quarter 2015 results. The company topped earnings expectations in the quarter, but recorded lower profits owing to depressed metal prices. Profit, as reported, decreased 25.7% year over year to $68.6 million (or 94 cents per share) in the quarter from $92.3 million ($1.18 per share) a year ago.

Barring pre-tax impairment and restructuring charges, the company registered earnings of 87 cents per share in the reported quarter that topped the Zacks Consensus Estimate of 82 cents. Reliance Steel continued to gain from improved operational performance and strong customer demand across most of its end markets.

The company feels that the U.S. economy will witness modest growth this year. Management expects overall sales volumes to increase by around 6−8% sequentially in the first quarter of 2016 owing to normal seasonal increase in shipping volumes and additional volume from Tubular Steel, Inc.

Reliance Steel also believes that metal pricing for most of its products has stabilized at the present level and anticipates average selling price in the first quarter of 2016 to be flat to up 1.5% sequentially. The company expects adjusted earnings for the first quarter in the band of 80 to 90 cents per share.

Reliance Steel currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials sector include AK Steel Holding Corp. AKS, Usinas Siderurgicas de Minas Gerais S.A. USNZY and TimkenSteel Corporation TMST, all carrying a Zacks Rank #2 (Buy).

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RELIANCE STEEL (RS): Free Stock Analysis Report
 
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