March 16, 2016

Ryerson Reports Improved Results

“Despite one of the harshest and most difficult metals environments we have seen in terms of magnitude and duration, Ryerson has continued making impressive strides,” claimed Eddie Lehner, the company’s president and chief executive officer, during his recent conference call with analysts and investors. The Chicago-based distributor reported a loss of just $500,000 on revenues of $3.2 billion in 2015. That’s an improvement from the loss of $25.7 million in 2014, when revenues were 12.6 percent greater.

Ryerson achieved the 2015 results despite a 6.7 percent reduction in the average selling price per ton and a 6.3 percent decline in tons shipped. The company’s performance compares favorably to average industry shipments, which contracted by 8 percent, Lehner said.

Ryerson’s revenues for fourth-quarter 2015 totaled $668.8 million, down 15.3 percent from the previous quarter and 23 percent from fourth-quarter 2014. Ryerson lost $20.5 million in the fourth quarter, down from profits of $6.7 million in the third quarter and $4.8 million in fourth-quarter 2014.

Lehner attributed the improved annual results to the company’s cost reduction efforts, its working capital management and market share gains. Ryerson achieved its goal to capture annualized savings of $20 million and realized proceeds of $10 million from the sales of non-core assets and settlements. During 2015, Ryerson also reduced its inventories by $183 million, or 25 percent, and generated cash flow from operations of $259 million. “Strong working capital management and operating cash flows enabled the company to reduce debt by $225 million, or 18 percent,” said Erich Schnaufer, Ryerson’s chief financial officer.

Looking ahead to first-quarter 2016, Lehner said the company expects its results to exceed those of the previous and prior-year quarters. “While industry metal prices and year-over-year shipments remain at depressed and declining levels, there are signs of stabilization,” he said.
 

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Monday, October 23, 2017