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Reliance (RS) Acquires Steel Service Center MidWest Materials
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Reliance, Inc. (RS - Free Report) has successfully acquired all outstanding equity interests of Mid-West Materials, Inc., a leading flat-rolled steel service center primarily catering to North American OEMs. Established in 1952 and headquartered in Perry, OH, MidWest Materials offers a diverse range of steel products, including hot-rolled, high-strength hot-rolled, coated and cold-rolled varieties. These products serve various industries, such as trailer manufacturing, agriculture, metal fabrication and building products.
With annual net sales of approximately $87 million for the 12 months ending Dec 31, 2023, MidWest Materials has proven its robust performance in the market. The current management team of MidWest Materials will continue to lead the company under Reliance's ownership.
The addition of MidWest Materials to the Reliance family is met with excitement, as it bolsters Reliance's presence in the vital Ohio markets crucial for serving North American OEMs. This acquisition is strategically aligned with Reliance's growth trajectory, capitalizing on MidWest Materials' operational excellence and modern processing capabilities. MidWest Materials' unwavering commitment to superior customer service and product quality aligns seamlessly with Reliance's business ethos, further strengthening the synergy between the two entities.
Reliance anticipates numerous mutual benefits stemming from the acquisition, including leveraging its scale, providing access to capital for strategic investments and tapping into the wealth of expertise available across Reliance's extensive network of companies. This strategic move underscores Reliance's commitment to expanding its offerings and enhancing its value proposition to customers in key markets, positioning the company for continued growth and success.
Reliance’s shares have rallied 29.7% in the past year compared with a 1.3% rise of the industry.
Image Source: Zacks Investment Research
Despite macroeconomic uncertainties and geopolitical issues, Reliance expects healthy demand trends in the first quarter of 2024. Anticipating a 9-11% increase in tons sold compared to the fourth quarter of 2023, in line with seasonal patterns, RS also projects a 1-3% sequential rise in average selling price per ton in the first quarter. Consequently, adjusted earnings per share for the first quarter of 2024 are forecasted to be between $5.30 and $5.50 per share.
Zacks Rank & Key Picks
Reliance currently carries a Zacks Rank #3 (Hold).
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 59.4% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 37% in the past year.
The consensus estimate for IOSP’s current fiscal year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year rise. IOSP beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 10.5%. The company’s shares have increased 21.8% in the past year.
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Reliance (RS) Acquires Steel Service Center MidWest Materials
Reliance, Inc. (RS - Free Report) has successfully acquired all outstanding equity interests of Mid-West Materials, Inc., a leading flat-rolled steel service center primarily catering to North American OEMs. Established in 1952 and headquartered in Perry, OH, MidWest Materials offers a diverse range of steel products, including hot-rolled, high-strength hot-rolled, coated and cold-rolled varieties. These products serve various industries, such as trailer manufacturing, agriculture, metal fabrication and building products.
With annual net sales of approximately $87 million for the 12 months ending Dec 31, 2023, MidWest Materials has proven its robust performance in the market. The current management team of MidWest Materials will continue to lead the company under Reliance's ownership.
Reliance, Inc. Price and Consensus
Reliance, Inc. price-consensus-chart | Reliance, Inc. Quote
The addition of MidWest Materials to the Reliance family is met with excitement, as it bolsters Reliance's presence in the vital Ohio markets crucial for serving North American OEMs. This acquisition is strategically aligned with Reliance's growth trajectory, capitalizing on MidWest Materials' operational excellence and modern processing capabilities. MidWest Materials' unwavering commitment to superior customer service and product quality aligns seamlessly with Reliance's business ethos, further strengthening the synergy between the two entities.
Reliance anticipates numerous mutual benefits stemming from the acquisition, including leveraging its scale, providing access to capital for strategic investments and tapping into the wealth of expertise available across Reliance's extensive network of companies. This strategic move underscores Reliance's commitment to expanding its offerings and enhancing its value proposition to customers in key markets, positioning the company for continued growth and success.
Reliance’s shares have rallied 29.7% in the past year compared with a 1.3% rise of the industry.
Image Source: Zacks Investment Research
Despite macroeconomic uncertainties and geopolitical issues, Reliance expects healthy demand trends in the first quarter of 2024. Anticipating a 9-11% increase in tons sold compared to the fourth quarter of 2023, in line with seasonal patterns, RS also projects a 1-3% sequential rise in average selling price per ton in the first quarter. Consequently, adjusted earnings per share for the first quarter of 2024 are forecasted to be between $5.30 and $5.50 per share.
Zacks Rank & Key Picks
Reliance currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) and Ecolab Inc. (ECL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Innospec Inc. (IOSP - Free Report) ,carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 59.4% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 37% in the past year.
The consensus estimate for IOSP’s current fiscal year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year rise. IOSP beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 10.5%. The company’s shares have increased 21.8% in the past year.