Ryerson Holding Corp., Chicago, reported net sales of $772 million in the second quarter, a 35.9 percent decline from the same quarter in 2019. Compared with the prior quarter, net sales were down 23.6 percent.
During the pandemic-affected quarter, Ryerson reported a net loss of $24 million, a reversal from both the prior quarter and the same quarter in 2019. The service center company reported a loss of $8 million for the first half.
“I can only express my profound gratitude to my Ryerson teammates, our customers, our suppliers and all essential workers as we continue to navigate through this time of unparalleled collective adversity unlike any other experienced in our lifetimes, said Ryerson President and CEO Eddie Lehner. “Through the extraordinary efforts of my Ryerson colleagues, we are living up to our cultural DNA of ‘Say yes and figure it out.’ We are working safer, we are looking out for one another, and we are making the decisions we have to make to in order to weather the crisis and serve our dual mandate to safeguard the health and safety of our workforce while preserving liquidity and recovery capacity for Ryerson."
The average selling price of $1,671 per ton was down 6.4 percent from the previous quarter and 13.6 percent from the second quarter last year.
Despite the challenges, Ryerson outperformed the industry in the quarter, with shipments down 21.4 percent compared with the MSCI total of 26.3 percent. The company also generated $100 million in cash from operating activities and reduced net debt by approximately $100 million compared with the first quarter.
The company expects the third quarter to continue to be impacted by COVID-19 pandemic-induced economic stresses. Through the first few weeks of third quarter, the company noted some favorable trends relative to the second quarter, including the sense carbon prices are stabilizing in a range, stainless and aluminum prices are on an improving trajectory and demand conditions continue to see incremental improvement in the majority of Ryerson's end markets.
“Our business model development, improved capital structure and our shared commitment to social justice and equality will enable our continued progress as we emerge from the pandemic and work toward better days,” Lehner said.