Toronto, Ontario-based Russel Metals Inc. announced that for the 2019 third quarter, the company generated net income of C$18 million on revenues of C$0.9 billion, compared to net income of C$68 million on revenues of C$1.1 billion in the third quarter of 2018. In the second quarter of 2019 the company reported revenues of C$0.9 billion and net income of C$31 million.
Revenues in the company’s metals service centers decreased 15 percent to C$474 million for the quarter compared to the same period in 2018. Same store tons shipped in the third quarter of 2019 were approximately 5 percent lower than the third quarter of 2018. The average selling price was 11 percent lower than the 2018 third quarter.
Revenues in the energy products segment in the 2019 third quarter decreased 36 percent to C$298 million compared to C$463 million in the 2018 third quarter due to reduced year-over-year North American rig counts and a large line pipe shipment included in the company’s 2018 revenues not replicated in 2019.
Revenues in the steel distributors segment in the 2019 third quarter decreased by 18 percent to C$94 million compared to C$114 million in the 2018 third quarter.
Mr. John G. Reid, President and CEO, commented, "The cyclical nature of our business was evident this quarter with all three business segments experiencing challenging conditions. Hot rolled coil pricing is currently at levels last experienced in 2016. Our operations are adept at managing working capital and overhead throughout the business cycle which resulted in cash flow generated from operations in excess of C$100 million during the period ended September 30, 2019."