Ryerson’s Q1 Income Declines
By Metal Center News Staff
on May 4, 2018
Ryerson reported net income of $10.4 million in the first quarter, a decline from $40.6 million in fourth-quarter 2017 and $54.3 million in the year-ago period.
Net sales increased 16.1 percent to $941.3 million compared with first-quarter 2017, driven by an 11.9 percent increase in volumes. Revenues were up 16.1 percent compared with the prior quarter.
The company gained market share during the quarter, as its tons sold figure of 5.6 percent eclipsed the 2.6 percent industrywide figure from MSCI.
“The company executed exceptionally well in the first quarter, exceeding industry volume growth paired with sequential margin expansion and further expense leverage improvement all combining to generate higher adjusted EBITDA compared to both the fourth quarter of 2017 and first quarter of 2017,” said Eddie Lehner, president and CEO. “In addition to these key earnings improvements, Ryerson remains atop our industry in inventory management, reducing days of supply to a multi-year low of 68 from 69 in the first quarter of 2017, while maintaining high service levels in providing an expanding array of value-added solutions to our customers.”
Ryerson executives continue to anticipate improved demand and pricing conditions in the second quarter of 2018. U.S. industrial production increased to a five-year high of 4.4 percent in February and remained elevated at 4.3 percent in March.
Further, U.S. steel capacity utilization reached a 40-month high of 77.4 percent in March, as domestic producers supplied a greater percentage of U.S. steel demand. Trade policy actions muted imported tons in the first quarter of 2018, as evidenced by a 9 percent reduction in metal imports compared to the first quarter of 2017, officials said.