UPDATE 2-Reliance Steel posts qtrly loss, shares drop

* Q2 loss of 8 cents/shr

* Revenue drops 40 percent

* Shares down nearly 6 percent (Adds share price, details)

NEW YORK, July 23 (Reuters) - Metals processor and distributor Reliance Steel & Aluminum Co (RS.N) said on Thursday second-quarter profit fell on weak demand coupled with a bigger-than-expected drop in steel prices.

Reliance, whose shares fell nearly 6 percent, did not provide a third quarter forecast except to say it expects to be profitable.

"The 2009 second quarter was the most difficult operating environment that we have ever experienced at our company," David Hannah, chairman and chief executive officer of Reliance, said in a statement.

The company does not expect any meaningful improvement in demand for the rest of the year.

The net loss was $5.8 million, or 8 cents per share, compared with $156.6 million, or $2.12 per share, in the same quarter of 2008, the Los Angeles-based company said. Sales in the quarter fell 40 percent to $1.2 billion.

Analysts expected earnings of 20 cents per share and revenue of $1.46 billion, according to Reuters Estimates.

Metal service centers, like Reliance, acquire steel, aluminum and other metals from metals producers and refine them to meet customer specifications.

Its shares were down $2.32 at $37.41 in late morning trading on the New York Stock Exchange. (Reporting by Steve James, editing by Gerald E. McCormick and Derek Caney)