Russel's First-Quarter Sales Top $1 Billion
By Metal Center News Staff
on May 13, 2019
Russel Metals Inc., Mississauga, Ontario, reported sales of $1.03 billion in the first quarter, a 10.9 percent increase compared with the same quarter last year. Net income declined 10.5 percent to $34 million.
During the quarter, higher selling prices led to increased revenues, which were partially offset by slightly lower demand. First quarter gross margins experienced pressure due to competitive pricing and the higher average cost of inventory.
"We are pleased with the solid results achieved during the first quarter of 2019. Our industry experienced an exceptional year in 2018 and, although 2019 will be more challenging, our first quarter is indicative of a solid start compared to previous cycles,” said President and CEO John Reid. “Our service centers gained market share in the quarter through further growth in our value-added processing strategic initiative.”
First-quarter revenues in the company’s metals service centers increased 18 percent to $538 million compared with the same period in 2018. The average selling price improved 21 percent over the first quarter of 2018 and was consistent with the 2018 fourth quarter.
Same store tons shipped were approximately 6 percent lower than the 2018 first quarter.
In the company’s energy products segment, revenues declined 2 percent to $373 million. U.S. field stores saw year-on-year growth, but those were offset by declining selling prices for OCTG and line pipe operations in both the U.S. and Canada.
Sales in the steel distributors segment increased 30 percent to $122 million in the quarter. The increases reflected higher North American steel prices and stronger Canadian demand.