Just a day after announcing its acquisition of West Coast fabrication and machining company Excelsior, Ryerson reported solid third quarter earnings results on Thursday, Nov. 2.
Despite decreasing metal prices and declining industry demand, the Chicago-based service center group maintains a positive outlook. “Ryerson delivered strong operational and financial performance,” said Eddie Lehner, Ryerson president and CEO “Ryerson is now in a historically strong position to reinvest in the modernization and growth of our intelligent and connected service center network, while continuing to provide returns to shareholders.”
Driven primarily by lower selling prices, Ryerson’s Q3 revenues of $1.54 billion were a decline of 11.5% from Q2’s $1.74 billion and were 2% lower year-over-year. When compared to Q2, average selling prices declined 9.4% while total volumes of 512,000 tons dropped 2.3%. Q3 carbon steel shipments of 405,000 tons were down 0.7% from the prior quarter but up 1.5% YoY.
The pivot to operating under counter-cyclical conditions in Q3 has prepared Ryerson to continue into what they expect to be the same conditions in Q4. “Benchmark carbon, aluminum, and nickel price decreases are anticipated to continue into the fourth quarter while sales volumes experience slow-down driven by seasonal declines in buying as well as decelerating economies in North America, Europe, and China,” the company stated the earnings release.
Revenues in Q4 are anticipated to be down to $1.25 billion to $1.30 billion, with average selling prices decreasing 7–11%,and shipments declining 8–10%.
By Becca Moczygemba, Becca@SteelMarketUpdate.com
Becca MoczygembaRead more from Becca Moczygemba
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