Ryerson Reports Q3 Revenues Up 17.6 Percent
By Metal Center News Staff
on Nov 21, 2017
Chicago-based metal distributor Ryerson reported net income of $1.7 million in the third quarter, compared with $8.2 million in the year-ago period. Third-quarter revenues were $864.2 million, a year-over-year increase of 17.6 percent.
Ryerson President and CEO Eddie Lehner said earnings were negatively impacted by several factors, including soft demand in July, margin compression troughs in August and business interruptions in September. “Irrespective of these conditions, we continued to grow our market share compared to MSCI industry metrics and maintained industry-leading expense and working capital ratios,” he said.
Tons sold increased 7.3 percent over the third quarter of 2016, and Ryerson's inventory balance stood at 74 days of supply, compared with 78 days in the prior-year period. For the quarter, Ryerson shipped 387,000 tons of carbon steel, 73,000 tons of stainless steel and 53,000 tons of aluminum. The average selling price per ton increased 9.6 percent year over year, according to the company.
Through nine months, net income of $17.1 million was down 37.3 percent year over year, while revenues increased 17.3 percent to $2.6 billion. Total tons shipped in 2017 increased 4.6 percent and average selling prices per ton increased 12.2 percent. The company said its year-to-date shipments have outpaced the industry, which grew 3 percent through the first nine months of 2017.
Heading into the fourth quarter, Lehner said the company expects global supply and demand fundamentals to be stronger, citing supply-side reforms in China, a weaker U.S. dollar and lower domestic import levels. Overall, Ryerson expects margins to expand into the fourth quarter 2017.
“Demand remains positive for most of our key end markets compared to last year, and Ryerson anticipates these conditions to continue into the fourth quarter,” Lehner said. “On balance, Ryerson anticipates fewer shipments when comparing the fourth quarter and third quarter due to expected seasonal declines with fewer shipping days partially offset by normalizing conditions in hurricane-impacted areas.”