Reliance Steel RS said that Gregg J. Mollins has been appointed as its CEO and President, effective as of May 20. He will replace David H. Hannah who has been transitioned to the role of Executive Chairman.
Mollins, who joined Reliance Steel as a Division Manager back in 1986 and served on the company’s broad since 1997, possesses more than 37 years of experience in the metals industry. He was appointed as the company’s Vice President in 1992 and was also named Vice President and Chief Operating Officer in 1994.
Mollins was promoted to the role of Executive Vice President and Chief Operating Officer in 1995. His responsibilities were further enhanced in 2002 as he was named Reliance Steel’s President and Chief Operating Officer.
Hannah, who served as Reliance Steel’s CEO since 1999, will remain on its board of directors as Executive Chairman till his retirement in July next year. He will remain active in the company’s operations until his exit. The company will appoint an independent, non-executive Chairman of the board at the time of Hannah's retirement.
Reliance Steel also announced the results of its annual meeting of shareholders, which were in sync with the recommendations of the company's board as set forth in the proxy statement. Shareholders, at the annual meeting, approved a number of proposals including the re-election of all of Reliance Steel’s directors for one year and the proposal to reincorporate the company in Delaware.
Reliance Steel’s revenues and earnings for the first quarter of 2015, reported on Apr 23, topped Zacks Consensus Estimates, aided by its cost-control actions and higher sales volumes. The company, however, sees continued pricing pressure in 2015 due to high levels of metal imports.
While Reliance Steel continues to be challenged by weak steel industry fundamentals and weak pricing, it is well placed to leverage the strong momentum across a number of end markets, including aerospace. The company should also gain from its broad and diversified product base, wide geographic footprint and aggressive acquisition strategy.
Reliance Steel is a Zacks Rank #2 (Buy).
Other steel and metals companies having favorable Zacks Rank are Olympic Steel Inc. ZEUS, Global Brass and Copper Holdings, Inc. BRSS and Norsk Hydro ASA NHYDY. While Olympic Steel carries a Zacks Rank #1 (Strong Buy), both Global Brass and Copper Holdings and Norsk Hydro hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment