Service Centers
February 11, 2021
Russel Metals Sees 2020 Profits Fall Due to Market Volatility
Written by Sandy Williams
Russel Metals, a Canada-based metals processor and distributor, saw profitability fall in 2020 due to “extraordinary market volatility” caused by the global pandemic. The company posted net earnings of $25 million for 2020, down from $77 million in 2019. Earnings for the year included a $26 million non-cash impairment charge related to the U.S. energy operations. Revenue for the year totaled $2.7 billion. Operations in the U.S. contributed approximately 32% of total revenue for the company during 2020.
On a quarterly basis, price increases late in the fourth quarter resulted in the average selling price improving 5% from the third quarter. Increased pricing and stronger seasonal demand increased fourth-quarter revenue to $671 million from $615 million in the third quarter, but charges during the quarter negatively impacted earnings resulting in a net loss of $9 million.
