Russel Metals reports $18 million net income for Q3

Thursday, 05 November 2020 20:53:07 (GMT+3)   |   San Diego

Russel Metals Inc. announced its financial results for the three months ended September 30, 2020, reporting a net income of $18 million, compared to $5 million in the previous quarter and $18 million in Q3 2019. Revenues totaled $615 million, compared to $588 million in Q2 2020 and $869 million in Q3 2019.

In a press release, the company said that in the 2020 third quarter, market conditions gradually improved from the deterioration in the 2020 second quarter.  Russel’s operations were deemed essential and remained open in the 2020 second quarter with reduced activity. At the end of the 2020 second quarter, many jurisdictions in which the company operates began to re-open their economies leading to increased demand.  As a result, Russel’s operations generally realized higher operating volumes and activity as the 2020 third quarter progressed.

John G. Reid, President and CEO, commented, "Although business conditions remain challenging, they are improving. Late in the 2020 third quarter and early in the 2020 fourth quarter our metals service centers and steel distributors experienced a modest increase in demand and a rapid increase in coil and plate pricing.  In our energy products segment, we have seen rig counts improve slightly and energy prices remain range bound. Results at the line pipe/OCTG component of this segment reflect the depressed rig counts, however, they made solid progress reducing their capital employed primarily through inventory reductions and remain focused on continuing to reduce their capital."

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