Ryerson Reports Second-Quarter Sales Increase
By Metal Center News Staff
on Aug 16, 2019
Ryerson, Chicago, reported sales of $1.2 billion in the second quarter, an increase of 14 percent compared with the same quarter in 2018. The gains were driven by the third-quarter acquisition of Central Steel & Wire, as same-store sales were flat compared with second-quarter 2018.
The company shipped 2.2 percent more tons in the quarter, though tons shipped were down 2.2 percent on a same-store basis. The second-quarter average selling price was up 1.6 percent, offsetting the decline in shipments. First-half shipments were down 1.4 percent, offset by a 7.1 percent increase in average selling prices.
Ryerson continued to gain market share during the second quarter, as North American industry volume contracted 7.7 percent, according to the Metal Service Center Institute.
“Ryerson exceeded our second-quarter 2019 revenue guidance with higher tons shipped offset by average selling price declines that were in line with expectations. However, margins declined more than our guidance due to cost of goods sold declining at a slower than expected pace relative to inventory replacement cost,” said Eddie Lehner, Ryerson’s president and CEO.
Ryerson’s net income for the quarter totaled $16.4 million, a modest decline from the $17.5 million posted in the same quarter of 2018. First-half net income of $45.9 million was up 64.5 percent to $45.9 million.
“We expect higher gross margin, excluding LIFO in the third quarter of 2019 given the positive inflection in hot-rolled coil and LME Nickel prices, along with a decline in average inventory costs during the period,” Lehner said.