Russel Metals Inc. reports 2009 Q4 and full year results

Toronto, Ontario-based Russel Metals Inc. announced a fourth quarter loss of $25 million, a contrast to the $29 million net earnings reported in Q4 2008.

Revenues for Q4 2009 in Russel’s metals service centers segment were reported at $236 million, a year-on-year decrease of 44 percent, which also reflects a nine percent decrease in revenues compared to Q3 2009. Operating profits for the metals service centers for Q4 2009 were $7 million, a year-on-year decrease of 63 percent. In addition, operating profits were approximately 54 percent less than operating profits reported in Q3 2009.

Russel’s steel distributors segment posted $47 million in revenues for Q4 2009, a 61 percent year-on-year decrease , which also reflects an 18 percent decrease in revenues reported in Q3 2009. Operating profits excluding inventory write-downs were also down, being reported at $2 million for Q4 2009, an $18 million year-on-year decrease, which also reflects an 89 percent decrease to operating profits reported in Q3 2009.

Revenues for the energy tubular products segment were reported at $147 million, a 50.5 percent year on year decrease. Revenues did, however, increase 27 percent compared to Q3 2009 due to a few large low margin orders and low natural gas drilling activity which continued into Q4 2009. Operating profits excluding inventory write-downs were $1 million for Q4 2009, a 97.5 percent year-on-year decrease.

For the full-year 2009, Russel reported a loss of $92 million, a 40 percent year on year decrease. The company cited lower demand and steel pricing significantly reducing revenues and year-on-year operating profits..

Said Brian R. Hedges, President and CEO, “I am glad 2009 is behind us. Early 2010 activity levels have increased for both our metals service center and energy tubular products operations compared to the end of 2009. The mill price increases announced for the first quarter of 2010 have firmed pricing in the market. Our capital structure is well positioned to support growth during 2010.”