Service Centers
February 14, 2018
Russel Metals Earnings Double in 2017
Written by Tim Triplett
Russel Metals Inc., the Toronto-based steel distributor, reported positive results in its fourth-quarter and year-end earnings report, driven by sales to the energy sector. Net income for the company totaled $124 million on revenues of $3.3 billion in 2017, a significant improvement from the $63 million earned on sales of $2.6 billion in 2016.
The distributor ended the year strong with fourth-quarter sales of $825 million and earnings of $28 million. Revenues in the company’s service center segment totaled $418 million, 27 percent higher than the 2016 fourth quarter due to the acquisition of Color Steels, as well as stronger demand and higher selling prices. Same store tons shipped increased 13 percent and same store selling price per ton increased by 9 percent over the comparable 2016 quarter. Fourth-quarter service center operating profits totaled $16 million compared to $7 million in the prior-year quarter due to stronger activity and operating efficiencies.
