Ryerson Expects Flat Revenue in Q3

Ryerson Holding Corp., a leading distributor and processor of metals, provided guidance for its third quarter ending September 30, 2016. The Company expects third quarter 2016 net income in the range of $8 million to $12 million and adjusted EBITDA, excluding LIFO in the range of $46 million to $50 million. In Q3 2015, Ryerson posted net income of $7 million and adjusted EBITDA, excluding LIFO of $30 million.

Said Ryerson in their guidance release: The Company anticipates revenue for the third quarter of 2016 to be flat with the second quarter of 2016, with higher average selling prices offset by lower sequential shipments. Spot hot rolled coil steel prices are down 25% from their peak levels in the second quarter, and spot carbon plate prices are nearing parity with hot rolled coil prices. Steel mill lead times have shortened across all carbon steel categories, consistent with slowing demand evidenced so far during the third quarter. With respect to specific end markets, food processing equipment and consumer durables are demonstrating sequential quarterly demand strength while oil & gas, commercial ground transportation, agricultural equipment, metal fabrication and machine shops are showing sequential quarterly demand weakness. Construction equipment sequential quarterly demand is neutral.