Reliance Steel & Aluminum Co.
) announced that it has acquired Aluminium Services UK Limited, the
holding company of All Metal Services. All Metal Services is the
largest independent raw material service provider to the aerospace
and defense industries globally.
All Metal Services offers total material management solutions to
leading Original Equipment manufacturers (OEM) and their
subcontractors in more than 40 nations around the world. The
company operates from nine strategically located sites, each
situated to best serve the needs of its customers in the UK and
abroad. The company's sites in London, Bolton, Belfast, Bristol and
Birmingham are complimented by its global service centers in
France, China, India and its latest facility in Malaysia.
All Metal Services offers a vast range of aerospace metals
including aluminum, steel, titanium, nickel alloys and aluminum
bronze, providing full or cut to size materials. It also provides
in-house machining and water-jet cutting for more complex
All Metal Services will now operate as a fully-owned subsidiary
of Reliance Steel through UK holding companies. According to
Reliance Steel, the acquisition will enable it to expand its
presence in the aerospace market. Reliance Steel will continue to
support the existing global customer base of All Metal Services and
maximize opportunities for growth.
Recently, Reliance Steel released its second-quarter 2014
results. The company saw higher profit in the quarter on increased
sales, but its earnings missed expectations. Profit, as reported,
moved up roughly 19% year over year to $96.5 million or $1.22 per
share in the quarter from $81 million or $1.05 per share a year
Barring one-time items including costs related to sale of
non-core assets, earnings were $1.30 per share, a 14% rise from
$1.14 recorded a year ago. However, it missed the Zacks Consensus
Estimate of $1.39. Adjusted earnings were at the bottom end of the
company's expectations, impacted by lower-than-expected volume
Reliance Steel, a Zacks Rank #3 (Hold) stock, is well placed to
leverage the strong momentum across a number of end markets,
including automotive and aerospace.
Other metals companies having favorable Zacks Rank are NN Inc. (
), NSK Ltd. (
) and Century Aluminum Co. (
). All of them hold a Zacks Rank #1 (Strong Buy).
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