Russel Metals reported today third quarter earnings of $16 million on revenues of $639 million. These results compare to earnings of $13 million on revenues of $773 million in the same quarter in 2015.
In a press release, the company said “Our metals service center and steel distributor operations experienced strong gross margins in the quarter positively impacting earnings. We continue to actively address our costs, particularly in the energy products segment which continues to experience low activity levels.”
Revenues of $349 million in the metals service center segment in the 2016 third quarter were 5 percent lower than the 2015 third quarter due to lower demand, primarily in Alberta related to customers tied to the oil and gas industry. Tons shipped in the metals service centers decreased by 5 percent and selling price per ton remained consistent compared to the 2015 third quarter.
Revenues in the steel distributors segment in the 2016 third quarter of $72 million were 30 percent lower than the 2015 third quarter due to lower North American demand.