Russel Metals reports Q4 Loss
By Metal Center News Staff
on Feb 13, 2020
Russel Metals, Inc., Mississauga, Ontario, reported a fourth-quarter net loss of $6.6 million in 2019 compared to $46.2 million earnings for the same period in 2018. At year-end 2019, the company realized net earnings of $76.6 million, a 65 percent decline from the prior year.
Revenues in the company’s service centers decreased 21 percent to $412 million for the quarter, compared to the same period in 2018. The decline was attributed to lower tons shipped and a lower selling price per ton.
“During 2019, our operations turned in a solid performance, in what proved to be a challenging year. Trade actions that had dramatically increased steel prices in 2018 were reversed in mid-2019, leading to selling prices that were lower than in 2017,” said John G. Reid, president and CEO. “Certain of our operations had stellar years, particularly Wirth Steel, Comco Pipe and Color Steels who reported stronger results than 2018.”
“Looking forward to 2020, there has been a modest increase in pricing and consistent demand. In the fourth quarter of 2019, we completed the acquisition of City Pipe consistent with our strategy to grow our oilfield store operations. City Pipe and Apex Remington have merged to form Elite Supply Partners. We expect Elite Supply Partners to have revenues in excess of $300 million in 2020 and look forward to the success and growth of the combined operation.”