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Mar 31, 2021
Ryerson Q1 2021 Earnings Report
Ryerson reported strong first quarter results driven by asset management and expense leverage.
Key Takeaways
Ryerson Holding Corporation reported first quarter revenues of $1.15 billion, a 13.6% increase compared to the year-ago period. The company achieved net income attributable to Ryerson Holding Corporation of $25.3 million, or $0.66 per diluted share, and Adjusted EBITDA, excluding LIFO of $123.5 million.
Generated first quarter revenues of $1.15 billion, 13.6% higher than the year-ago period.
Achieved a cash conversion cycle of 53 days, compared to 77 days for the first quarter of 2020.
Realized expense leverage as warehousing, delivery, selling, general and administrative expenses as a percentage of sales decreased by 240 bps sequentially.
Generated first quarter earnings per diluted share of $0.66, or adjusted earnings per diluted share of $0.26 excluding non-recurring items.
Revenue by Segment
Forward Guidance
Ryerson anticipates second quarter 2021 revenues in the range of $1.32 billion to $1.34 billion driven by sequential average selling prices growth of 12 to 14 percent and shipment growth of 1 to 3 percent. LIFO expense in the second quarter is expected to be in the range of $74 to $78 million as average inventory costs continue to rise. Therefore, Adjusted EBITDA, excluding LIFO is expected to be in the range of $131 to $135 million and earnings per diluted share are expected to be in the range of $0.49 to $0.60.
Positive Outlook
- Demand fundamentals have continued to improve.
- Supply-side constraints remain.
- Price durability in all three of Ryerson’s primary commodities.
- Sequential average selling prices growth of 12 to 14 percent is expected.
- Shipment growth of 1 to 3 percent is anticipated.
Challenges Ahead
- Pandemic driven uncertainties persist.
- LIFO expense in the second quarter is expected to be in the range of $74 to $78 million.
- Average inventory costs continue to rise.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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