Ryerson Enjoys Improved Sales, Income in Second Quarter
By Metal Center News Staff
on Aug 6, 2018
Ryerson Holding Corp., Chicago, reported net income of $17.5 million in the second quarter, an increase of 68.2 percent from the first quarter. Net income in the same quarter in 2017 was $600,000.
Revenues totaled $1.1 billion in the second quarter, up 12.3 percent compared to the first quarter of 2018 due to 8.8 percent higher average selling prices and 3.2 percent higher volume. Compared to the year-ago period, sales increased 20.8 percent, driven by an increase in average selling price per ton of 15.2 percent and higher volume of 4.8 percent.
“Ryerson executed at a high level across the entire enterprise in our never-ending pursuit of providing great customer experiences time after time,” said Eddie Lehner, president and CEO. “Adjusted EBITDA, excluding LIFO, gross margins, excluding LIFO, expense management, and asset management all improved sequentially and year-over-year.”
Revenues in the first half totaled just short of $2 billion, an increase of 18.3 percent compared to the first half of 2017, as average selling prices increased 12.3 percent and tons shipped increased 5.3 percent. Year-to-date, Ryerson shipments have outpaced the industry as measured by MSCI. Industry shipments through the first half were up 4.3 percent, compared with Ryerson’s North America shipment gains of 5.0 percent.
Ryerson’s first-half net income totaled $27.9 million, nearly double the figure from the first six months of 2017.
Following the second quarter, Ryerson finalized the acquisition of Central Steel & Wire, the company’s largest acquisition in more than 10 years. “We welcome our new colleagues at Central Steel & Wire in offering our customers the best of both our companies as we move forward together,” Lehner said.
Central Steel & Wire has approximately 900 employees and has annual revenue of approximately $600 million. The addition of Central Steel & Wire will enhance Ryerson’s combined commercial, processing, and operational strengths to provide a greater breadth of products and services for our customers, the company claimed.