Ryerson reports higher revenues, lower earnings in Q2

Tuesday, 06 August 2019 21:49:40 (GMT+3)   |   San Diego
       

Ryerson Holding Corporation, a value-added processor and distributor of industrial metals, today reported results for the second quarter ended June 30, 2019.

Ryerson achieved revenues of $1.20 billion, an increase of 14.0 percent compared to $1.06 billion in the second quarter of 2018, with tons shipped 14.7 percent higher and average selling prices down 0.7 percent. Net income attributable to Ryerson Holding Corporation was $16.4 million in the second quarter of 2019 compared to $17.5 million in the prior year period.

Excluding the results of the third quarter 2018 acquisition of Central Steel & Wire (CS&W), the company said revenues for the quarter were $1.05 billion, flat compared to the same quarter last year with average selling prices 1.6 percent higher and tons shipped down 2.2 percent. Ryerson said it continued to gain market share during the second quarter of 2019 compared to the second quarter of 2018, as North American industry volume contracted 7.7 percent according to the Metal Service Center Institute, while Ryerson North American same-store tons shipped contracted by only 1.7 percent.

Ryerson said in a statement that overall, CS&W exceeded expectations, albeit with stronger returns in the second half of 2018 compared to the first half of 2019. Ryerson said it continues to view CS&W as a company with strong commercial goodwill, but is working through operating challenges presented by CRU hot-rolled coil price deflation in the second quarter of 2019, while the base business remains consistent with the company’s expectation of the operating model improvements necessary when Ryerson purchased CS&W.

For the third quarter of 2019, Ryerson anticipates revenues of $1.075 billion to $1.125 billion with tons shipped down 3 to 5 percent compared to the second quarter of 2019 due to normal seasonality patterns and slowing end-market demand.

Ryerson anticipates more significant volume declines in the oil and gas sector to be offset by relative strength in commercial ground transportation and construction sectors. Commodity prices are expected to stabilize and move modestly higher for carbon and stainless products, while aluminum prices are expected to be modestly lower for the remainder of the year. However, due to the lagging effects of replacement cost decreases experienced in the second quarter of 2019, as well as lagging contract formula pricing, Ryerson expects average selling prices in the third quarter to be down 3 to 5 percent.


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