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Metals USA (MUSA) reported 1Q earnings of $0.44/share, matching the Street’s expectations and up 33% from 4Q earnings of $0.33/share and year-ago EPS of $0.33.

Guidance for 2Q was for higher EPS than 1Q “despite a difficult business environment,” due to greater shipping days and rising prices based on lagged index-based contracts. Management expects steel prices to be “range bound” in the 2Q as mills aren’t “interested in raising prices.” Demand for almost all of MUSA’s customer segments has remained solid, management said, although the improvement in non-residential construction activity has been driven by the mild winter and continues near the bottom.

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