NewsArticles
Minimize


Aug. 20, 2014

Russel's Earnings Improve in 2Q
 
Russel Metals, Inc., Mississauga, Ontario, reported second-quarter earnings of $31 million, an improvement on the $29 million earned in the previous quarter and the $20 million earned in the same quarter last year. Its net sales totaled $893 million, up 17.8 percent from last year’s second quarter, but down 3.3 percent from the first quarter.

"Our revenues, gross margins and operating profits improved in all three of our business segments versus last year. We have benefited from the strengthening economy in the United States and Western Canada," President and CEO Brian Hedges told investors and analysts during the company's quarterly conference call. "Our investments over the last three years in acquisitions, process improvements, new facilities and processing equipment have allowed us to strengthen and grow our market share."

Revenues in Russel's metals service center segment increased 11 percent to $419 million in the second quarter, compared to the year-ago period, due to stronger demand and higher steel prices. Gross margins improved to 20.9 percent from 20.4 percent.

Steel prices could be even higher if not for lower offerings from offshore. "Plate spreads and coil spreads on the world market are at numbers where they're attractive. It's creating a ceiling for the pricing environment right now," said John Reed, executive vice president and chief operating officer. "Foreign product is still very much available. I don't see anything changing dramatically in Q3 one way or another."

Revenues in Russel's energy products segment increased 17 percent to $366 million led by significant activity in the operations servicing oil and gas drilling in Western Canada. Revenues in the company's steel distributors segment increased by 63 percent to $106 million in the second quarter, fueled by stronger demand and higher pricing.

Through two quarters, Russel spent $16 million on capital expenditures. It plans to invest $40 million in upgrades this year.

The company remains interested in acquisitions, but opportunities have been limited. "We're poking around, but activity is not at the same level as this time last year. There have been some deals we've looked at and walked away from. People’s expectations about what they’re going to get are not realistic," Hedges said.

From the Editor's Desk
Minimize
October 2014: It's Your Job to Help Fill the Skills Gap
More...
 
Pause
Business Practices and Technologies
Minimize
October 2014: Mixed Outlook for Global Metals Prices
More...
The Cutting Edge, a service center technology supplement to Metal Center News
More...
Summer 2014
More...
 
Pause
New Products
Minimize
Trumpf Expands Range on TruMark 5000 Series
More...
Koike Aronson Debuts New Plasma Cutter
More...
Miyachi Unitek's Sigma XY
More...
New TMC is Messer's Largest Cutting Machine
More...
Laserdyne 795 XLZ Designed for 3D Parts
More...
Mazak's STX Champion Cuts Thick Sheets
More...
 
Pause
Directories
Minimize
Metal Center News 2014 Directories: Print or Digital copies are available for $85 U.S. for each copy.
 

 
2014 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.  



 
2014 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.



 
2014 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



Friday, November 28, 2014