LOS ANGELES--(Business Wire)-- Reliance Steel & Aluminum Co. (NYSE:RS) reported today its financial results for the third quarter and nine months ended September 30, 2009. For the 2009 third quarter, Reliance reported net income of $41.8 million, or $.57 per diluted share. For the 2008 third quarter, Reliance had net income of $152.5 million, or $2.07 per diluted share. For the 2009 second quarter, Reliance had a net loss of $5.8 million, or $0.08 per diluted share. Sales for the 2009 third quarter were $1.24 billion, down from 2008 third quarter sales of $2.57 billion, and flat with 2009 second quarter sales of $1.24 billion. The 2009 third quarter financial results include in cost of sales a pre-tax LIFO income amount of $67.5 million, compared with a pre-tax LIFO expense amount of $79.0 million for the 2008 third quarter and a pre-tax LIFO income amount of $75.0 million in the 2009 second quarter. For the nine months ended September 30, 2009, net income amounted to $56.1 million, compared with net income of $416.5 million for the same period in 2008. Earnings per diluted share were $.76 for the nine months ended September 30, 2009, compared with earnings of $5.65 per diluted share for the nine months ended September 30, 2008. Sales for the 2009 year-to-date period were $4.04 billion, down 39% from 2008 nine month sales of $6.58 billion. The 2009 nine month financial results include in cost of sales a pre-tax LIFO income amount of $217.5 million, compared with a pre-tax LIFO expense amount of $136.5 million in the 2008 year-to-date period. Reliance`s tons sold for the 2009 third quarter were down 26% from the 2008 third quarter and down less than 1% from the 2009 second quarter. Average price per ton sold was down 34% compared to the 2008 third quarter and flat with the 2009 second quarter. For the nine months ended September 30, 2009, tons sold were down 13% and average pricing was down 29% compared to the same period of 2008. For the 2009 third quarter carbon steel sales were 54% of our revenues; aluminum sales were 19%; stainless steel sales were 14%; alloy sales were 7%; other sales were 4% and toll processing sales were 2%. David H. Hannah, Chairman and CEO of Reliance said, "The 2009 third quarter results improved substantially from the 2009 second quarter mainly due to higher gross profit margins. Because of mill price increases for most of our products during the third quarter and our significant inventory reductions over the past twelve months, our inventory costs on hand are now more in line with current replacement costs allowing us to improve our gross profit margins from the historically low margins experienced in the 2009 second quarter. We further reduced our FIFO inventory levels by $92 million in the quarter. Demand from our customers improved slightly during the quarter from the low levels experienced in July." "During the 2009 nine months, we generated record cash flow from operations of $807.2 million. We repaid $192 million of debt during the quarter. On September 28, 2009, we amended our existing $1.1 billion credit facility to adjust certain financial ratios and limit certain uses of cash through June 30, 2010. Pricing was adjusted and we also extended the maturity date on $1.02 billion of the $1.1 billion credit facility an additional year, through November 2012. Concurrent with the amendment and extension of the credit facility, we paid off and terminated our term loan that had an outstanding balance of $444 million, using $194 million of cash on hand and $250 million of borrowings on the credit facility. At September 30, 2009 we had cash on hand of $88 million. Our net debt-to-total capital ratio is 28% as of September 30, 2009," commented Hannah. "We are pleased with the significant improvement in our gross profit margins; however, we are uncertain as to business activity in the 2009 fourth quarter. Although we believe that demand is fairly stable at low levels, the fourth quarter is typically seasonally slower for us. Pricing also seems to be more stable than it was earlier in the year; however, we believe there may be some slight downward pressure on pricing for many of our products in the coming months. Because of this, we are not comfortable providing earnings guidance for the 2009 fourth quarter. We will, as the quarter progresses, communicate any meaningful information regarding our operations as it becomes available. Reliance stands on solid financial footings and is well positioned for the eventual recovery in economic conditions," concluded Hannah. On October 21, 2009, the Board of Directors declared a regular quarterly cash dividend of $.10 per share of common stock. The dividend is payable on January 6, 2010 to shareholders of record December 4, 2009. The Company has paid regular quarterly dividends for 49 consecutive years. Reliance will host a conference call that will be broadcast live over the Internet (listen only mode) regarding the third quarter and nine month financial results for the period ended September 30, 2009. All interested parties are invited to listen to the web cast on October 22, 2009 at 11:00 a.m. Eastern Time at: http://www.rsac.com in the Investor Information section or http://www.streetevents.com. Player format: Windows Media and RealPlayer. The web cast will remain on the Reliance web site at: www.rsac.com through November 22, 2009 and a printed transcript will be posted on the Reliance web site after the completion of the conference call. Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is the largest metals service center company in North America. Through a network of more than 200 locations in 38 states and Belgium, Canada, China, Mexico, Singapore, South Korea, and the United Kingdom, the Company provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance Steel & Aluminum Co.`s press releases and additional information are available on the Company`s web site at www.rsac.com. The Company was named to the 2008 "Fortune 500" List, the 2008 Forbes "America`s Best Managed Companies" List and the 2009 FortuneList of "The World`s Most Admired Companies." This release may contain forward-looking statements. Actual results and events may differ materially as a result of a variety of factors, many of which are outside of Reliance Steel & Aluminum Co.`s control. Risk factors and additional information are included in Reliance Steel & Aluminum Co.`s reports on file with the Securities and Exchange Commission, including Reliance Steel & Aluminum Co.`s Annual Report on Form 10-K for the year ended December 31, 2008 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009.