Service Centers

Ryerson swings to Q3 loss amid difficult business climate

October 29, 2024

Ryerson Holding Corp.

Third quarter ended Sept. 30	2024	2023	Change
Net sales	$1,126.6	$1,246.7	-9.6%
Net earnings (loss)	$(6.6 )	$35.0	-118.9%
Per diluted share	$(0.20 )	$1.00	-120%
Nine months ended Sept. 30
Net sales	$3,591.3	$3,996.3	-10.1%
Net earnings (loss)	$(4.3 )	$119.9	-103.6%
Per diluted share	$(0.13 )	$3.34	-103.9%

(in millions of dollars except per share)

Ryerson swung to a loss in the third quarter of 2024 as it navigated a “contractionary” environment in industrial metals and manufacturing.

The Chicago-based service center group reported a net loss attributable to Ryerson of $6.6 million in Q3’24 vs. net income of $35 million a year earlier. Sales slid nearly 10% to $1.13 billion in the same comparison.

Eddie Lehner, Ryerson’s president, CEO, and director, said in a statement on Tuesday:

“Two things can be true at the same time:

1) The industry is experiencing a cyclical bottoming marked by 24 months of moving average demand and price contraction; and

2) Ryerson’s record investments in systems, capital expenditures, and acquisitions over this same period are positioning the company well for the next cyclical upturn.”

The company said Q3 revenue performance was hurt by “seasonal and weather-impacted volume declines of 4.5%, in addition to average selling prices decreasing 3.7%.”

Lehner noted that despite the challenging conditions, the company experienced improvements in some key performance indicators. These included cash flow and expense and working capital management.

Ryerson shipped 382,000 short tons of carbon steel in Q3’24, off 3.8% from the previous quarter but up 3% from the same period a year earlier.

Outlook

Looking ahead, Lehner said, “We are seeing investment-related growth pains and disruptions across our network beginning to subside as we move through the balance of 2024, with budding optimism for 2025.”

For Q4’24, Ryerson expects customer shipments to seasonally and counter-cyclically decline 8% to 10% from the prior quarter.

Net sales in Q4’24 are anticipated to be in the range of $1.00 billion to $1.04 billion. Average selling prices are seen between falling 1% to increasing 1%.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.