Nov. 26, 2014
Ryerson Reports Loss in Third Quarter
Ryerson Holding Corp., Chicago, reported a net loss of $34.7 million in the company's third quarter, a decline from the $2.6 million income in the previous quarter. The Chicago-based service center company cited $32.7 million worth of expenses related to its August initial public offering as a factor in the quarterly loss.
Net sales in the quarter totaled $948 million, an increase of 10.2 percent from the prior year and up 1.8 percent from the previous quarter. Higher average selling prices and a favorable shift in the company's product mix were behind the increased sales, executives said.
"We are pleased with the 48 percent gain in adjusted EBITDA, our fifth consecutive quarter of year-over-year improvement in this important metric," said Mike Arnold, Ryerson's president and chief executive officer. "And we held adjusted EBITDA essentially unchanged on a sequential basis, despite the typical seasonal slowdown relative to the second quarter, mid-quarter slowing in pricing momentum, and margin pressure driven by increasing import levels and wide spreads between domestic and imported metal prices."
Ryerson saw revenues of $2.8 billion in the first nine months of 2014, up 3.6 percent compared to the same period last year. It reported a net loss for the three quarters totaling $30.5 million, however, compared to net income of $9.1 million in the year-ago period.