Ryerson's Sales Jump in First Quarter
By Metal Center News Staff
on May 13, 2019
Ryerson reported net sales of $1.23 billion in the first quarter, a 31 percent increase from the same quarter last year. Excluding the 2018 acquisition of Central Steel & Wire, revenues were up 12.5 percent compared with the prior year.
Average selling prices climbed 13.1 percent, but tons shipped fell 0.6 percent.
Net income in the quarter totaled $19.1 million, compared with $63 million during the same quarter of 2018.
“Ryerson grew net income and market share while generating expense leverage and managing working capital effectively,” said Eddie Lehner, president and CEO. “We accomplished these financial objectives despite well-chronicled disruptive winter weather conditions, falling commodity prices, and rising average inventory costs which compressed margins through the first quarter.”
Ryerson gained market share during the first quarter of 2019 as North American volumes contracted 6.4 percent year-over-year according to the Metal Service Center Institute.
Ryerson anticipates tons shipped to be flat in the second quarter compared with the first quarter as customer demand sentiment remains stable in most of key end-markets while channel inventories continue to destock from over-supplied levels and mill lead times remain short. Average selling prices as a function of softening commodity pricing across carbon, aluminum, and nickel are expected to decline 1 to 3 percent sequentially.