Russel Metals reports slightly lower net income in Q1

Wednesday, 08 May 2019 23:22:27 (GMT+3)   |   San Diego

Toronto, Ontario-based Russel Metals Inc. announced financial results for the first quarter ended March 31, 2019. Net income for the quarter totaled CAD 34 million ($25.2 million) on increased revenues of CAD 1.0 billion ($741.8 million), compared to net income of CAD 38 million ($28.2 million) in the first quarter of 2018. In a statement, the company said higher selling prices led to increased revenues, which were partially offset by slightly lower demand.

First quarter revenues in the company’s metals service centers increased 18 percent to CAD 538 million ($399.1 million) compared to the same period in 2018. The average selling price improved 21 percent over the first quarter of 2018 and was consistent with the 2018 fourth quarter. Same store tons shipped were approximately 6 percent lower than the 2018 first quarter.

First quarter 2019 revenues in the company’s energy products segment decreased 2 percent to CAD 373 million ($276.7 million) compared to CAD 382 million ($283.4 million) in the 2018 first quarter. The company said it experienced a modest decline in selling prices for OCTG and Line Pipe operations in both Canada and the US, which led to gross margins of 18.9 percent compared to 19.3 percent for the 2018 first quarter.

Revenues in the company’s steel distributors segment increased by 30 percent to CAD 122 million ($90.5 million) in the 2019 first quarter compared to the 2018 first quarter reflecting higher North American steel prices and stronger Canadian demand.

USD = CAD 1.35 (May 8)

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