Distributors/Service Centers

Ryerson swings to profit after Q1 loss
Written by Ethan Bernard
July 31, 2024
Ryerson Holding Corp.
| Second quarter ended June 30 | 2024 | 2023 | Change | 
|---|---|---|---|
| Net sales | $1,225.5 | $1,343.5 | -8.8% | 
| Net earnings (loss) | $9.9 | $37.6 | -73.7% | 
| Per diluted share | $0.29 | $1.06 | -72.6% | 
| Six months ended June 30 | |||
| Net sales | $2,464.7 | $2,749.6 | -10.4% | 
| Net earnings (loss) | $2.3 | $84.9 | -97.3% | 
| Per diluted share | $0.07 | $2.33 | -97.0% | 
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.
 
			    			
			    		Ethan Bernard
Read more from Ethan BernardLatest in Distributors/Service Centers
 
		                                SMU Mill Order Index fell in September
SMU’s Mill Order Index declined in September after repeated gains from June through August. The shift came as service center shipping rates and inventories fell.
 
		                                Ryerson, Olympic bet big on merger as steel slump enters third year
Executives framed the all-stock deal as a path to scale, efficiency, and long-term growth despite ongoing weakness in the metals market.
 
		                                Olympic reports lower Q3 profits after Ryerson merger announcement
Olympic Steel reported a decline in third-quarter earnings on Tuesday, as the company separately announced its merger with service center giant Ryerson.
 
		                                M&A blockbuster as Ryerson, Olympic Steel announce merger
National service center chains Ryerson Holding Corp. and Olympic Steel Corp. have announced a merger between the two companies.
 
		                                Ryerson reports net loss in Q3 as weak demand offsets tariff price support
President and CEO Eddie Lehner said Ryerson has faced market headwinds in the third quarter.
