Volatile Steel Prices Hurt Russel’s Results in 2019

Russel Metals has remained profitable despite wild swings in steel prices caused by U.S. tariffs, coupled with weak energy prices and declining rig counts. The Canadian distributor reported net income of $77 million on revenues of $3.7 billion in full-year 2019. Results were down significantly from the prior year when the company saw a profit of $219 million on sales of $4.2 billion (figures are Canadian dollars).

“During 2019, our operations turned in a solid performance in what proved to a 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. Certain of our operations had stellar years, particularly Wirth Steel, Comco Pipe and Color Steels, which reported stronger results than 2018. During the year, we emphasized working capital management and generated $250 million in cash from operating activities. Looking forward to 2020, there has been a modest increase in pricing and consistent demand,” said Russel President and CEO John G. Reid, during the company’s conference call this week with analysts and investors.