Reliance Steel & Aluminum Co. (NYSE:RS) Q3 2019 Earnings Conference Call - Final Transcript
Oct 24, 2019 • 11:00 am ET
Greetings and welcome to the Reliance Steel & Aluminum Company Third Quarter 2019 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to introduce your host Brenda Miyamoto, Investor Relations. Thank you. You may now begin.
Thank you operator. Good morning and thanks to all of you for joining our conference call to discuss our third quarter 2019 financial results. I'm joined by Jim Hoffman, our President and CEO and Karla Lewis our Senior Executive Vice President and CFO. Bill Sales, our Executive Vice President of Operations will also be available during the question-and-answer portion of this call. A recording of this call will be posted on the Investor section of our website at investor.rsac.com. The press release and the information on this call may contain certain forward-looking statements which are based on a number of assumptions that are subject to change and involve known and unknown risks, uncertainties or other factors, which may not be under the company's control, which may cause the actual results, performance or achievement of the company to be materially different from the results performance, or other expectations implied by these forward-looking statements. These factors include but are not limited to those factors disclosed in the company's annual report on Form 10-K for the year ended December 31, 2018 under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The press release and the information on this call speak only as of today's date and the company disclaims any duty to update the information provided therein and herein. I will now turn the call over to Jim Hoffman, President and CEO of Reliance.
Thank you Brenda. Good morning everyone and thank you for joining us today. I'm very pleased to discuss our 2019 third quarter results with you today. But first, I would like to address safety and thank everyone for the progress we are making in this area. Safety remains our primary core value and I applaud each of my Reliance colleagues for the relentless commitment to safety each and every moment, each and every day. Turning to our financial performance in the third quarter of 2019, we continue to execute our strategy of focusing on the high levels of customer service across diverse products and end markets with increasing levels of value-added processing, which once again produced strong financial results.
Demand was somewhat better than we anticipated, which along with outstanding performance by our managers in the field generated quarterly net sales of $2.69 billion and a gross profit margin of 30.3%. We believe our third quarter 2019 financial results including diluted earnings per share of $2.40, an increase of 18.2% year-over-year further highlight our unique business model and improved earnings power as well as our increased resilience to fluctuations in metals pricing. Our shipments in the third quarter were higher than we had anticipated, driven mainly by demand strength in non-residential construction. We also experienced an increase in shipments of stainless steel products, which we believe reflects