Aug. 16, 2017

Ryerson Grows Sales in Second Quarter

Ryerson, Chicago, reported net income of $800,000 in its second quarter, a decrease of 85.2 percent from the same quarter in 2016. Net sales for the quarter totaled $875.4 million, compared with $739.8 million for the year-ago period.

The 18.3 percent increase in sales came despite “conflicting and volatile factors” affecting the industry, according to the company. Conditions such as significantly higher steel import levels and falling nickel and carbon prices impacted Ryerson’s pricing power, which resulted in margin compression.

“Despite the noted margin compression and muted pricing power relative to rising purchase metal costs during the quarter, Ryerson grew market share, demonstrated expense leverage and maintained supply chain acuity, managing our days of supply below 70 days for the second consecutive quarter,” Ryerson President and CEO Eddie Lehner said.

A 4.2 percent increase in tons sold over the first quarter and a 3.1 percent increase for the average selling prices per ton helped drive quarterly revenue. For the quarter, Ryerson shipped 390,000 tons of carbon steel, 74,000 tons of stainless steel and 52,000 tons of aluminum. The average selling price per ton was up 15.4 percent year over year.

Ryerson's inventory balance stood at 68.9 days of supply in the second quarter, compared with 74.4 days in the year-ago quarter.

Additionally, the Section 232 investigations have heightened price volatility and import draws in the quarter. However, Lehner says the overall effect on the industry has been positive.

“Section 232 headlines have also brought needed scrutiny and attention worldwide to the conflated hypocrisies and breakages in the current global trading system pertaining to industrial metals,” he added.


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Tuesday, December 12, 2017