Service Centers
Ryerson Expects Slowing Sales, Shipments To Continue Into Q4
Written by Laura Miller
October 31, 2023
Ryerson
| Third quarter ended Sept. 30 | 2023 | 2022 | % Change |
|---|---|---|---|
| Net sales | $1,247 | $1,543 | -19% |
| Net earnings | $35.3 | $55.1 | -36% |
| Per diluted share | $1.00 | $1.46 | -32% |
| Nine months ended Sept. 30 | |||
| Net sales | $3,996 | $5,035 | -21% |
| Net earnings | $120.4 | $415.3 | -71% |
| Per diluted share | $3.34 | $10.78 | -69% |
Ryerson saw lower sales and shipments in the third quarter and is anticipating further declines in the last quarter of the year.
In its Q3 earnings report, the Chicago-based service center group reported lower selling volumes and selling prices, resulting in a 7.2% sequential decline in net sales to $1.2 billion. Net income of $35.3 million was down slightly from $37.6 million in Q2 and down 36% from the same quarter last year. (See chart above.)
Q3 carbon steel shipments of 371,000 net tons were down 3.4% sequentially and 8.4% year on year. The average selling price of all carbon steel products (sheet, plate, and longs) was $1,744 per ton in the quarter, down 2% sequentially and 15.3% YoY.
“Prices across our product mix decreased during the quarter, while lower transactional customer quoting activity and reduced OEM customer order sizes put downward pressure on average selling prices and compressed gross margins,” Ryerson’s President and CEO Eddie Lehner said in a statement.
Ryerson noted it is continuing to invest in growth opportunities. It completed the acquisition of Norlen Inc. in early October. Start-up activities continued at new service center locations in University Park, Ill., and Las Vegas. Additionally, the company expanded its location in Shelbyville, Ky.
“As we look towards the fourth quarter and into 2024, our current investments in our physical and digital network position Ryerson well for both the next upturn and expected longer-term secular growth drivers in North American manufacturing activity,” Lehner added.
Ryerson is a value-added processor and distributor of industrial metals including carbon steel, stainless steel, and aluminum products. It operates approximately 100 locations throughout the US, Canada, Mexico, and China.
Laura Miller
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