NewsArticles
Minimize


Aug. 21, 2013

Russel Remains Consistently Profitable
 
Russel Metals Inc., Mississauga, Ontario, reported second-quarter earnings of $20 million, a modest decline from the $23 million posted during the same quarter last year and the $22 million earned in the first quarter. Net sales for the second quarter totaled $758.1 million, 5.4 percent better than the second quarter of 2013, but down 7.7 percent from the previous quarter.

“The weakness in demand levels experienced since the start of 2013 continued in the second quarter. We expect volumes to continue at current levels in our Metals Service Center and Steel Distributor segments in the second half,” said Brian R. Hedges, president and CEO, during the company’s quarterly conference call with analysts and investors.

Revenues in Russel's Metals Service Center segment slipped 13 percent to $378 million in the second quarter due to a combination of lower demand and lower pricing. Gross margins at Russel’s service centers were consistent with the same quarter last year, but were slightly lower than the first quarter, reflecting modestly lower steel prices.

Revenues in Russel's Steel Distributors segment decreased by 29 percent in the second quarter, to $65 million, due to lower demand and pricing. Industry-wide demand declines and pricing pressures resulted in customers delaying their purchases, Hedges said.

In Russel’s Energy Products segment, second-quarter revenues increased 63 percent, to $121 million, due to the acquisition of Apex Distribution. Operating profit improved to $17 million, in part due to a strong quarter from Russel’s Comco Pipe and Supply operation servicing the Canadian oil sands. The weakness that group traditionally experiences in the second quarter was muted by the Apex Distribution acquisition, Hedges said.

“We believe we are at or near the bottom of the pricing curve and expect some price improvements in the upcoming quarters. The typical seasonality in our energy products operation in the second quarter was extended by the flooding in Western Canada and the year-over-year drop in North American rig counts,” he added.

Looking ahead, Russel executives don’t see conditions improving much in the second half. “We continue to focus on cost reductions and managing inventory levels in all of our segments to generate stronger results as we do not anticipate any meaningful improvement in shipments,” he said.

From the Editor's Desk
Minimize
July 2015: Did Auto, Aluminum Makers Act Too Soon?
More...
 
Pause
Business Practices and Technologies
Minimize
July 2015: Dey: Base Business on Fundamentals, Not Tomorrow’s Price Forecast
More...
Summer 2014
More...
 
Pause
New Products
Minimize
Behringer Saws: HBE Series Features Automatic Adjustments
More...
Trumpf: TruLaser Increases Productivity
More...
Mazak Optonics Corp, new OPTIPLEX Fiber laser-cutting series with Zeta 9
More...
Cosen Saws: CNC-430, a fully automatic programmable band saw
More...
Pat Mooney: Danobat Band Saw Has Zone Cut Technology
More...
Red Bud Industries, Offers Heavy-Gauge Slitters
More...
 
Pause
Directories
Minimize
Metal Center News Directories: Print or Digital copies are available for $85 U.S. for each copy.
 

 
Metal Distribution Directory  
(Not Published on This Web site)
Metal Center News' Spring Metal Distribution Directory is your on-line guide to Metal Producers, Equipment Manufacturers and Software companies.  



 
Directory of Master Distributors
(Not Published on This Web site)
The Metal Center News Directory of Master Distributors—distributors who sell to other distributors—is an invaluable tool for service centers seeking new sources for special or hard-to-find products. Master distributors play an important role in the marketplace, giving service centers an alternative to buying in mill quantities and helping to remove redundant and excess inventories from the distribution channel.



 
Directory of Toll Processors
(Not Published on This Web site)
Metal Center News' annual toll processing directory is a simple-to-use resource to help companies locate service providers that can meet their specific processing needs.


Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Sunday, August 30, 2015