861884--3/15/2006--RELIANCE_STEEL_&_ALUMINUM

related topics

{debt, indebtedness, cash}

{gas, price, oil}

{condition, economic, financial}

{regulation, change, law}

{customer, product, revenue}

{personnel, key, retain}

{stock, price, operating}

{cost, regulation, environmental}

{system, service, information}

{product, market, service}

{acquisition, growth, future}

{tax, income, asset}

Our indebtedness could impair our financial condition and reduce the funds available to us for other purposes and our failure to comply with the covenants contained in our debt instruments could result in an event of default that could adversely affect our operating results. We may not be able to generate sufficient cash flow to meet our debt service obligations. The costs that we pay for metals may fluctuate due to a number of factors beyond our control, which, on a combined basis, could adversely affect our operating results if we cannot pass on higher metal prices to our customers. The price of metals is subject to fluctuations in the supply and demand for metals worldwide and changes in the worldwide balance of supply and demand could negatively impact our revenues, gross profit and net income. We operate in an industry that is subject to cyclical fluctuations and any downturn in general economic conditions or our customers industries could negatively impact our revenues, gross profit and net income. We compete with a large number of companies in the metals service center industry, and, if we are unable to compete effectively, our revenues, gross profit and net income may decline. If we were to lose any of our primary suppliers or otherwise be unable to obtain sufficient amounts of necessary metals on a timely basis, we may not be able to meet our customers needs and may suffer reduced sales. If we do not successfully implement our acquisition growth strategy, our ability to grow our business could be impaired. As a decentralized business, we depend on both senior management and our key operating employees; if we are unable to attract and retain these individuals, our ability to operate and grow our business may be adversely affected. We are subject to various environmental and employee safety and health regulations, which could subject us to significant liabilities and compliance expenditures. Our operating results have fluctuated, and are expected to continue fluctuating, depending on the season, and such fluctuations may adversely affect our stock price. Ongoing tax audits may result in additional taxes. The acquisition of EMJ is our largest and first public company acquisition and there may be additional risks of which we are not aware or existing risks may change over time. Our business could be adversely affected by economic downturns. Damage to our computer infrastructure and software systems could harm our business.

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861884--3/15/2006--RELIANCE_STEEL_&_ALUMINUM_CO