May 13, 2015
Ryerson Reports $2.5 Million Loss
Ryerson, Inc., reported a net loss of $2.5 million during the first quarter, a slight decline compared to both the previous quarter and first-quarter 2014. The Chicago-based service center company reported net income of $4.8 million in the fourth quarter and $1.6 million in the same quarter of 2014.
Net sales in first-quarter 2015 totaled $868.0 million, flat with the prior quarter and a decline of 0.7 percent from first-quarter 2014. During this year’s first quarter, Ryerson reduced inventory by $76 million, or 10 percent.
"We continued to effectively manage areas within our control, such as inventory and expenses," said Mike Arnold, Ryerson's outgoing president and CEO. "As a result, we generated strong, counter-cyclical cash flow. However, macro conditions—with supply exceeding demand across virtually all metal products on a global basis—pressured our results in the quarter."
The company reported shipments of 476,000 tons in the quarter, an increase of 1.1 percent from the prior quarter, but down 5.9 percent from first-quarter 2014. The average selling price of $1,824 per ton was down 1.1 percent from the prior quarter, but up 5.6 percent from the same quarter last year.
"Continued deflationary pressure in metal prices resulted in gross margin compression in the quarter, as average-cost inventories exceeded spot replacement costs," Arnold said. "We are aggressively managing inventories so we can align our average-cost inventory with current prices and expand margins as we capture the benefits of our corporate transformation and value-added strategy."