Mississauga, Ontario-based Russel Metals Inc. announced Wednesday fourth quarter earnings of $31 million, or $0.50 per share on revenues of $1 billion. These results compare to earnings of $23 million or $0.37 per share on revenues of $811 million in the same quarter last year and 2014 third quarter earnings of $0.54 per share.
Revenues of $403 million in the metals service center segment were 14 percent higher than the 2013 fourth quarter due to stronger demand and selling prices. Tons shipped at metals service centers increased by 5 percent and selling prices were higher by 10 percent over the 2013 fourth quarter. Gross margin dollars at metals service centers in the 2014 fourth quarter were $6 million higher than the same quarter last year reflecting stronger demand. Gross margin was 19.2 percent compared to 20.2 percent for the fourth quarter of 2013 due to steel price erosion resulting from competitive pressure. The 2014 fourth quarter metals service center operating profits were $13 million which was equivalent to the 2013 fourth quarter.
Revenues in the steel distributors segment increased by 77 percent to $125 million in the 2014 fourth quarter compared to the 2013 fourth quarter. Weak international market conditions combined with robust US demand levels and a strong US dollar resulted in imported steel products becoming more attractive in North America.