Toronto-based service centre chain Russel Metals saw its earnings drop sharply on-year in 2019, Kallanish reports.
Russel earned CAD 77 million ($58.08m) on total sales of CAD 3.68 billion in 2019, down from earnings of CAD 219m on sales of CAD 4.17 billion in 2018.
“During 2019, our operations turned in a solid performance, in what proved to be a challenging year where trade actions that had dramatically increased steel prices in 2018 were reversed in mid-2019 leading to selling prices that were lower than in 2017,” says ceo John Reid. “Certain of our operations had stellar years, particularly Wirth Steel, Comco Pipe and Color Steels who reported stronger results than 2018. During the year, we emphasised working capital management and generated CAD 250m in cash from operating activities.”
Reid adds that 2020 has thus far yielded “… a modest increase in pricing and consistent demand.”