Ryerson Holding Corporation expects its Q1 2020 revenues to decrease by $15mn in Q1 2020 compared to Q1 2019 due to historical seasonality and reduced manufacturing demand. The company forecasts revenue in the range of $1.03-1.07bn during the quarter. 

 

Covid-19 has disrupted the company’s service centers in China, it noted in its 2019 earnings report, resulting in delayed shipments and curtailed revenue projections for the quarter. It is too early for the company to determine Covid-19’s impact on its North American operations, but it is highly probably the virus could interfere with business.

 

Excluding China, the American customized metals provider expects 7-9pc shipment growth this quarter. In its earnings report, the company noted that while stainless surcharges have decreased since October, aluminum prices have fallen on lukewarm demand. It expects 0-2pc price growth this quarter compared to Q4 2019, as carbon pricing recovers, there are fewer China shipments, and transactional shipment volumes grow relative to program shipment volumes.

 

Carbon steel

In 2019, Ryerson shipped 1.8mn t (1.7mn mt) of carbon steel, rising 6.4pc from 1.7mn t in 2018. During Q4 2019, it shipped 421,000t of carbon steel, down by 5.6pc from the 446,000t during the same quarter in 2018. In Q4 2019, the company shipped 8.7pc less carbon steel than Q3 2019.

 

Ryerson’s carbon steel net sales in 2019 increased by 2.8pc to $2.4bn from $2.3bn in 2018. In Q4 2019, net sales totaled $492mn, down 21.4pc from $626mn during the same prior-year period, and down 13.4pc from its Q3 2019 net sales.

 

Aluminum

The firm’s aluminum shipments rose by 2.7pc in 2019 to 228,000t from the 222,000t in 2018. Aluminum shipments during Q4 2019 decreased by 7.4pc to 50,000t from the 54,000t during the same quarter in 2018, and declining by 15.3pc from one quarter earlier.

 

Ryerson’s aluminum net sales in 2019 increased by 3.9pc to 1.01bn from $980mn in 2018. During Q4 2019, aluminum net sales totaled $213mn, decreasing by 14.8pc from $250mn during the same quarter in 2018, and decreasing by 17.4pc from Q3 2019.

 

Stainless Steel

The company shipped 303,000t of stainless steel in 2019, increasing marginally by 0.3pc from the 302,000t in 2018. Stainless steel shipments in Q4 2019 declined by 8.2pc to 67,000t from 73,000t during the same quarter in 2018, and by 11.8pc from Q3 2019.

 

The firm’s stainless steel net sales decreased by 1pc to $1.06mn in 2019 from $1.07mn in the previous year. In Q4 2019 net sales declined to by 8.3pc to $242mn from $264mn during the same quarter in 2018, and by 6.9pc from Q3 2019.

 

Ryerson’s revenues increased by 2.1pc to $4.5bn in 2019 from $4.4bn during the prior year. However, its Q4 2019 revenues decreased by 17.1pc to $962mn from $1.2bn during the same quarter in 2018, and by 12.9pc from the previous quarter. Its adjusted net income increased by 68.1pc to $68mn in 2019 from $40mn in 2018. During Q4 2019, Ryerson had a $12mn net income, 87.1pc higher than $6mn in Q4 2018, and 26.1pc higher than Q3 2019.

 

The company’s EBITDA in 2019 was $190mn, down by 38.3pc from 308mn in 2018. Its $47mn Q4 2019 EBITDA declined by 7.1pc from $51mn during Q4 2018, and rose by 59pc from Q3 2019.

 

 

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