US service centre chain Ryerson’s profits rose to record high levels in the second quarter due to rising metal prices and strong backlogs. The company’s second earnings are up from a loss in the second quarter of last year and remain significantly above the prior quarter’s earnings, Kallanish understands.
In the second quarter ending 30 June, Ryerson earned $112.9 million on sales of $1.42 billion which is up from a loss of $25.6m on sales of $771.8m in the second quarter of 2020. The company’s second quarter performance remains above profits in the first quarter, during which Ryerson earned $25.3m on sales of $1.15 billion. Ryerson expects sales in the third quarter in the range of $1.5-1.6 billion with average prices rising by 10-12%.
“Halfway through our 179th year in business, our future has never looked brighter…Looking back over the quarter and ahead, more signs are emerging that support a sustained manufacturing expansion featuring recyclable industrial metals that are at the epicenter of current and future societal needs. With supply still unable to meet current and anticipated demand, manufacturing order backlogs keep rolling over and extending, lending further support to favorable pricing dynamics,” says ceo Eddie Lehner.
Ryerson’s carbon steel selling prices rose by 26.2% in the second quarter from pricing in the previous quarter. Year-over-year, the company’s steel prices remain up 60.7%. In the second quarter, Ryerson shipped 428,000 short tons of steel, up 3.4% from the prior quarter and 18.6% on-year.
“Our second quarter results reflect the success of our financial transformation as we continued to effectively manage working capital, realised expense leverage and achieved a net debt leverage ratio within our long-term target range,” explains cfo Jim Claussen.
Zach Johnson USA
