Russel Metals Inc. today announced financial results for the 2016 fourth quarter and for the year ended December 31, 2016.
For the year ended December 31, 2016, the company reported net income of $63 million on revenues of $2.6 billion. These results compare to a loss of $88 million on revenues of $3.1 billion in 2015. For the fourth quarter the company reported net income of $23 million on revenues of $654 million, compared to a net loss of $135 million on revenues of $673 million in Q4 2015.
Revenues of $330 million in Russel’s metals service center segment were 1 percent higher than the 2015 fourth quarter due to higher selling prices as the selling price per ton increased by 1 percent over the 2015 comparable quarter. Tons shipped remained consistent compared to the 2015 fourth quarter.
Revenues in the company’s steel distributors segment in the 2016 fourth quarter of $79 million were 11 percent higher than the 2015 fourth quarter. Gross margin as a percentage of revenues was 16.1 percent compared to negative margins in the same period in 2015 as metal prices significantly improved over 2015 levels.
Brian R. Hedges, CEO commented "We look forward to a positive first quarter of 2017 and a pickup in demand compared to 2016. Our increased profitability in 2016 reflects the constant attention of our operators to match expenses with business activity and their focus on managing the working capital levels of their businesses."