Steel Mills
Ryerson Announces Solid Third Quarter
Written by Becca Moczygemba
November 3, 2022
Just a day after announcing its acquisition of West Coast fabrication and machining company Excelsior, Ryerson reported solid third quarter earnings results on Thursday, Nov. 2.
Despite decreasing metal prices and declining industry demand, the Chicago-based service center group maintains a positive outlook. “Ryerson delivered strong operational and financial performance,” said Eddie Lehner, Ryerson president and CEO “Ryerson is now in a historically strong position to reinvest in the modernization and growth of our intelligent and connected service center network, while continuing to provide returns to shareholders.”
Driven primarily by lower selling prices, Ryerson’s Q3 revenues of $1.54 billion were a decline of 11.5% from Q2’s $1.74 billion and were 2% lower year-over-year. When compared to Q2, average selling prices declined 9.4% while total volumes of 512,000 tons dropped 2.3%. Q3 carbon steel shipments of 405,000 tons were down 0.7% from the prior quarter but up 1.5% YoY.
The pivot to operating under counter-cyclical conditions in Q3 has prepared Ryerson to continue into what they expect to be the same conditions in Q4. “Benchmark carbon, aluminum, and nickel price decreases are anticipated to continue into the fourth quarter while sales volumes experience slow-down driven by seasonal declines in buying as well as decelerating economies in North America, Europe, and China,” the company stated the earnings release.
Revenues in Q4 are anticipated to be down to $1.25 billion to $1.30 billion, with average selling prices decreasing 7–11%,and shipments declining 8–10%.
By Becca Moczygemba, Becca@SteelMarketUpdate.com
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Mills
Nucor names Batterbee, Bledsoe to HR roles
Nucor Corp. has promoted Thomas J. Batterbee to the position EVP of human resources and talent and appointed Elizabeth Bledsoe to the newly created position of president of human resources and talent.
Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.
USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.
SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.
POSCO inks MoU with Hyundai on Louisiana EAF mill
POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.