Nov. 25, 2015

Ryerson Reports Third-Quarter Profit

Ryerson, Chicago, reported net income of $6.7 million in the third quarter, reversing the $34.7 million loss in the same quarter of 2014. The service center company reported income of $15.8 million in the previous quarter.

Ryerson’s third-quarter net sales totaled $790.0 million, down 6.0 percent from the second quarter and 16.7 percent from third-quarter 2014. Compared with the prior quarter, Ryerson’s 0.8 percent increase in tons shipped per day was more than offset by a 6.7 percent decline in the average selling price. Compared to the prior year, tons shipped per day were down 5.0 percent and the average selling price was down 12.2 percent.

"I'm proud of the Ryerson team, the strong execution in the field, and our continued expense and working capital management," said Eddie Lehner, Ryerson's president and chief executive officer. "Despite the pressures associated with declining industry shipments and a sharp, protracted decline in metals pricing, Ryerson's third-quarter tons shipped increased slightly, and we more closely aligned our average cost inventory with current market prices."

The positive results were managed in an environment unsuitable for success, Lehner said. “As the third quarter unfolded, it became increasingly clear the metals industry is effectively in a recession. In four of last five quarters, metal service center industry shipments declined sequentially, and industrial metal commodity prices have dropped for the past four consecutive quarters.”

For the year-to-date, Ryerson’s net sales totaled $2.5 billion, down 9.3 percent from 2014. Net income totaled $20.0 million, compared to a loss of $30.5 million the previous year.

In light of challenging macro conditions, including continued depressed metals pricing, Ryerson will take action to reduce expense levels by as much as $20 million by mid-year 2016. The company has identified non-core assets for sale and expects to realize proceeds of more than $10 million over the next three to six months. “We will continue to evaluate our footprint to optimize distribution and processing capacity,” Lehner said of the planned asset sales.
 

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Sunday, October 22, 2017