Service Centers
Ryerson: Improved Demand in Third Quarter
Written by Sandy Williams
September 29, 2017
Ryerson Holding Corp., a value-added processor and distributor of industrial metals, sees improved demand and sequential growth for the third quarter in the construction equipment, food processing and agricultural industries and year-over-year growth in nearly all of its end markets.
In its third-quarter guidance, Ryerson noted U.S. service center volumes have increased by more than 3 percent, January through August, compared to the same period in 2016.
“However, elevated import levels, well-supplied metals markets, and Section 232-driven ‘panic’ buying throughout 2017 have muted pricing,” said the company. “The muted pricing, together with higher procured metal costs, resulted in margin compression through the quarter. Consequently, Ryerson anticipates gross margins, excluding LIFO expense, to be lower in the third quarter than the second quarter of 2017.”
Second- and third-quarter industrial economic demand appeared consistent, said Ryerson. The spread between foreign and domestic pricing narrowed due to a weaker U.S. dollar and improved global pricing conditions. Commodity prices continued to trend higher through the third quarter despite volatility in base metal markets.
Revenue for the third quarter is expected to be in the range of $840-$860 million, slightly lower than the second quarter, but above $735 million in third-quarter 2016. Quarterly shipments are expected to be 1 to 2 percent lower sequentially due to hurricane-related impacts and SAP conversion costs in Canada, but average selling prices and tons sold will be higher year over year, said Ryerson.
Net income for the third quarter is expected to range from zero up to $2 million.
Sandy Williams
Read more from Sandy WilliamsLatest in Service Centers
Olympic opens new Houston facility for Action Stainless unit
Olympic Steel has opened a new facility in Houston to support its Action Stainless business.
Worthington Steel sees demand improvement after earnings slump
Lower volumes and steel prices dampened Worthington Steel’s profits, but market momentum is building, the metals processor said in its most recent quarterly earnings report.
Galvanized buyers see strong demand, but uncertainty lingers
Demand is up, but tariffs raise concerns
Olympic taps Zito for new VP of development role
Cleveland-based Olympic Steel Inc. has promoted Scott M. Zito to the newly created role of vice president of business development. Zito has been with the company for more than 40 years.
Worthington Steel and Samuel to close Cleveland coil processing JV
Worthington Steel confirmed it is closing the Worthington Samuel Coil Processing (WSCP) facility in Cleveland. WSCP is a joint venture between Worthington Steel and Oakville, Ontario-based Samuel, Son & Co.