Reliance Steel & Aluminum Co (NYSE:RS) Q2 2023 Earnings Conference Call July 27, 2023 11:00 AM ET

Company Participants

Kimberly Orlando - ADDO Investor Relations

Karla Lewis - President, CEO & Director

Stephen Koch - EVP & COO

Arthur Ajemyan - CFO & SVP

Conference Call Participants

Katja Jancic - BMO Capital Markets

Philip Gibbs - KeyBanc Capital Markets

Martin Englert - Seaport Research Partners

Alexander Hacking - Citigroup

Operator

Greetings, and welcome to Reliance Steel & Aluminum Company's Second Quarter 2023 Earnings Call. [Operator Instructions]. This conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando with Addo Investor Relations. Thank you. You may begin.

Kimberly Orlando

Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's second quarter 2023 financial results. I am joined by Karla Lewis, President and Chief Executive Officer; Steve Koch, Executive Vice President and Chief Operating Officer; and Arthur Ajemyan, Senior Vice President and Chief Financial Officer. A recording of this call will be posted on the Investors section of our website at investor.rsac.com.

Please read the forward-looking statement disclosures included in our earnings release issued this morning and note that it applies to all statements made during this teleconference. The reconciliations of the adjusted numbers are included in the non-GAAP reconciliation part of our earnings release. I will now turn the call over to Karla Lewis, President and CEO of Reliance.

Karla Lewis

Good morning, everyone, and thank you for joining us today to discuss our second quarter 2023 financial results. Reliance's business model is designed to provide resilient performance throughout economic cycles, including both pricing and end market demand fluctuations present in the metals industry. The unique facets of our business model, highlighted by diversification, small order sizes, quick delivery and increased value-added processing, combined with strong execution by our full Reliance team, support our ability to deliver consistent, profitable results.

Overall activity at Reliance has remained healthy, as evidenced by solid volume growth year-over-year. We are excited by the continued onshoring and infrastructure spend activities that are creating new opportunities for us.

Turning to our results. Our second quarter net sales of $3.88 billion declined by 2.1% from the first quarter of 2023, with our tons sold down slightly more than anticipated and relatively flat selling prices that remain elevated by historical standards. Overall, customer activity in most of the end markets we serve remained healthy, with solid underlying demand and customer activity levels driven in part by our investments in organic growth.