Ryerson swings to profit after Q1 loss

Ryerson’s second-quarter earnings slumped on-year but swung to a profit from the prior quarter.

The Chicago-based service center group logged net income attributable to Ryerson of $9.9 million in Q2’24, down 74% from $37.6 million a year earlier on net sales that slipped 9% to nearly $1.23 billion. The company posted a net loss of $7.6 million in Q1’24.

“Over the second quarter we managed through a compressed pricing and declining industry demand environment that intensified in late-May through the end of the quarter,” Eddie Lehner, Ryerson’s president, CEO, and director, said in a statement on Tuesday.

He noted this was “marked by a continued slowdown in various industrial manufacturing and consumer end markets as well as notable declines in aluminum, nickel, and carbon steel commodity indexes.”

The company shipped 395,000 tons of carbon steel in Q2’24, up from 385,000 the previous quarter and 384,000 a year earlier.

Outlook

In Q3’24, Ryerson anticipates customer shipments to decrease 2-4% from the previous quarter.
Additionally, the company expects Q3 net sales to be between $1.12 billion and $1.16 billion, with average selling prices decreasing 3% to 5%.

For the rest of 2024, Ryerson is aiming for ~$60 million in annualized cost savings. This is updated from its previous $40-million target. It is seeking to achieve this primarily through “greater efficiencies” within its network.

Retirement of COO Mike Burbach

Mike Burbach will retire as COO, effective Dec. 31, Ryerson said in its earnings announcement. He has served in the position since April 2021.

“Mike has been a tremendous asset to our organization and will be missed by all those who know him and have had the pleasure to work him throughout his remarkable career – he is truly a pillar of the metals service industry and is well respected not just within Ryerson, but the entire industry,” Lehner said.