Service Centers
Ryerson: Improved Demand in Third Quarter
Written by Sandy Williams
September 29, 2017
Ryerson Holding Corp., a value-added processor and distributor of industrial metals, sees improved demand and sequential growth for the third quarter in the construction equipment, food processing and agricultural industries and year-over-year growth in nearly all of its end markets.
In its third-quarter guidance, Ryerson noted U.S. service center volumes have increased by more than 3 percent, January through August, compared to the same period in 2016.
“However, elevated import levels, well-supplied metals markets, and Section 232-driven ‘panic’ buying throughout 2017 have muted pricing,” said the company. “The muted pricing, together with higher procured metal costs, resulted in margin compression through the quarter. Consequently, Ryerson anticipates gross margins, excluding LIFO expense, to be lower in the third quarter than the second quarter of 2017.”
Second- and third-quarter industrial economic demand appeared consistent, said Ryerson. The spread between foreign and domestic pricing narrowed due to a weaker U.S. dollar and improved global pricing conditions. Commodity prices continued to trend higher through the third quarter despite volatility in base metal markets.
Revenue for the third quarter is expected to be in the range of $840-$860 million, slightly lower than the second quarter, but above $735 million in third-quarter 2016. Quarterly shipments are expected to be 1 to 2 percent lower sequentially due to hurricane-related impacts and SAP conversion costs in Canada, but average selling prices and tons sold will be higher year over year, said Ryerson.
Net income for the third quarter is expected to range from zero up to $2 million.
Sandy Williams
Read more from Sandy WilliamsLatest in Service Centers
Triple-S closes on American Stainless Tubing buy
Triple-S Steel Holdings has closed on its previously announced acquisition of American Stainless Tubing.
Worthington Steel fiscal Q4 profit rises despite sales drop
Worthington Steel earnings rose while sales fell in its fiscal fourth quarter.
Friedman’s profits tick higher on record quarterly sales volumes
Friedman Industries' earnings increased in its fiscal fourth quarter ended March 31.
Worthington expands European presence with closing of Sitem deal
The Ohio-based steel processor is now the majority owner of Italy's Sitem Group, which has six manufacturing sites across Italy, Switzerland, Slovakia, and France.
Klöckner narrows Q1 loss, targets growth in North America and Europe
Germany’s Klöckner & Co. reported a narrower loss in the first quarter as the company targets becoming the “leading” service center and metal processing firm in North America and Europe by 2030.