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Dec 31, 2019
Ryerson Q4 2019 Earnings Report
Ryerson reported results with gained market share, achieved same-store expense leverage, and reduced debt with strong operating cash flow generation.
Key Takeaways
Ryerson Holding Corporation reported a decrease in revenues but an increase in net income for the fourth quarter of 2019. The company achieved revenues of $961.5 million, a decrease of 17.1 percent compared to the same period last year, and net income attributable to Ryerson Holding Corporation was $26.4 million, an increase of $25.8 million compared to the prior year period.
Ryerson achieved revenues of $962M in Q4 2019, a decrease of 17.1% compared to Q4 2018.
Gross margin expanded to 18.8%, compared to 18.5% in Q3 2019.
Net income attributable to Ryerson Holding Corporation was $26.4M in Q4 2019 compared to $0.6M in the prior year period.
Adjusted EBITDA, excluding LIFO, was $46.9M in Q4 2019, a decrease of $3.6M compared to Q4 2018.
Revenue by Segment
Forward Guidance
For the first quarter of 2020, Ryerson anticipates revenues of $1.03 billion to $1.07 billion, driven by the normal seasonality patterns experienced in prior years, but mildly tempered by the recessed manufacturing demand that has carried over from the 2nd half of 2019.
Positive Outlook
- Ryerson expects sequential shipment growth for the first quarter to be in the range of 7 to 9 percent, excluding China.
- Current carbon prices have increased sequentially.
- Ryerson expects average selling prices in the first quarter to be flat to up 2 percent compared to the fourth quarter due to recovering carbon pricing, lower China shipments, and higher transactional shipment volumes relative to program shipment volumes.
- LIFO income in the first quarter is expected to be in the range of $21 to $25 million as average inventory costs continue to move closer to replacement costs.
- Earnings per diluted share are expected to be in the range of $0.31 to $0.42.
Challenges Ahead
- The Coronavirus outbreak is causing temporary and partial operational interruptions within our China service centers, resulting in decreased shipping days and reducing our revenue outlook for the first quarter by approximately $15 million year-over-year.
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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