Ryerson’s First-Half Revenue Reaches $3.5 Billion
By Metal Center News Staff
on Aug 8, 2022
Chicago-based Ryerson Holding Corp. reported net sales of $1.74 billion in the second quarter, a 22.9 percent gain compared with the same quarter in 2021, but down slightly from the prior quarter. Ryerson’s first-half revenue of $3.5 billion was up 36 percent compared to the previous year.
Ryerson’s net income in the quarter totaled $196.4 million, up 74.4 percent year over year and 20 percent compared with the first quarter. First-half net income of $360 million was more than double the total through six months of 2021.
“Driven by faster and sharper-than-anticipated price declines in nickel, aluminum and carbon steel indices during the quarter, we experienced mid-quarter margin compression as spot-replacement cost of inventory fell faster than average-cost of inventory amidst decelerating increases in average selling prices,” said Eddie Lehner, president and CEO of Ryerson.
Ryerson’s second quarter end-market sales volumes decreased sequentially by 0.8 percent, partially driven by the HVAC and food processing, machinery and agricultural equipment sectors, and partially offset by increased sequential sales volumes of 6.6 percent in oil and gas, 4 percent in commercial ground transportation and 1.5 percent in metal fabrication and machine shops.
Ryerson expects counter-cyclical business conditions in the third quarter of 2022. Benchmark carbon, aluminum and nickel prices have all re-based downward by an average of approximately 25 percent from the second quarter through July 31 compared with the first quarter of 2022. Despite the company’s diversified commodities mix, at approximately 50 percent stainless steel and aluminum, lower average selling price movements quarter over quarter appear to be broad-based while demand is moderating overall given slowing economies in the U.S., Europe, and China. As such, Ryerson anticipates third quarter 2022 revenues in the range of $1.45 billion to $1.55 billion, with a sequential average selling price decrease of 5 to 8 percent and a shipment volume decrease of 4 to 6 percent.