Ryerson Misses Mark in Challenging Quarter

Declining steel prices and inventory destocking contributed to a guidance miss for Ryerson Holding Corp. Although shipments increased 0.6 percent to 623,000 tons quarter-to-quarter, net sales fell 2.1 percent to $2.1 billion. Net income was $16.4 million, down from $30 million in the previous quarter and $18 million a year ago. Earnings per diluted share dropped to $0.43 from $0.78 in Q1 and missing Q2 guidance estimates of $0.77 to $0.97 per diluted share. Average selling price dipped 2.7 percent from Q1 to $1,934 per ton.

“Ryerson exceeded our second-quarter 2019 revenue guidance with higher tons shipped offset by average selling price declines that were in line with expectations,” said CEO Eddie Lehner. “However, margins declined more than our guidance due to cost of goods sold declining at a slower than expected pace relative to inventory replacement cost.”