#United States #Chicago #financial results #Ryerson #industrial metals

Ryerson Holding Corporation's Financial Overview for 2024

As 2024 concludes, Ryerson Holding Corporation (NYSE: RYI), a prominent player in the industrial metals industry, releases its comprehensive financial outcome revealing both challenges faced throughout the year and strategic decisions that lay a foundation for future growth. The company's financial report highlights a fourth-quarter revenue totaling $1.01 billion from shipments of 447,000 tons. While reflecting on this performance, Ryerson recorded a net loss of $4.3 million, equating to $0.13 loss per diluted share. This contrasts sharply with its prior-year figures, thus highlighting the stiff headwinds the company has navigated over the past year.

Despite navigating a tumultuous economic environment characterized by lower commodity prices and reduced demand, Ryerson achieved an impressive operating cash flow of $92.2 million for the fourth quarter and a total of $204.9 million for the full year. The company’s free cash flow also demonstrated resilience, reaching $68.9 million in the fourth quarter and $107.4 million for the entire year.

Key Financial Highlights

The report underscores the factors influencing Ryerson's revenue, including:

• - Average selling price per ton took a hit, reported at $2,254, underpinning a decrease of 3.0% quarter over quarter and 8.8% from the previous year.
• - Shipping volumes fell slightly, down by 7.8% compared to the third quarter of 2024, but a marginal decline of 0.7% year-on-year.
• - Margin fluctuations were notable; gross margin improved slightly from 17.9% in the third quarter to 19.0%, yet contracted from 22.2% in Q4 2023.

During 2024, Ryerson also laid considerable emphasis on its operational cost management. The corporation managed to reduce annual operating expenses by $60 million as part of ongoing modernization efforts at its various service centers, including significant upgrades in locations such as Shelbyville, KY, and Norcross, GA.

Market Positioning and Future Outlook

Ryerson's CEO, Eddie Lehner, reflected on these results during an earnings call, stating, “Our efforts to optimize operations while maintaining safety have been paramount. The increase in market share across metal categories amidst decreasing prices showcases our resilience.” He further noted that challenges such as supply chain disruptions and the overall downturn in the manufacturing sector necessitated a dynamic response.

Looking forward, the management team expressed optimism regarding customer shipments, anticipating an increase of 11% to 13% in the first quarter of 2025, supported by seasonal trends and recovery in transactional activity. Forecasts suggest net sales ranging from $1.12 billion to $1.15 billion, with manageable expenditures expected in the seasonally significant first quarter.

In 2024, the corporation's strategic decisions included the introduction of new e-commerce platforms and diversifying its market operations through acquisitions, like that of Production Metals, LLC. Such initiatives underscore Ryerson's commitment to adapting to and overcoming market volatility.

Conclusion

Ryerson’s performance in the tumultuous environment of 2024 illustrates a mixture of resilience and strategic foresight. While the financial losses signal areas needing attention, the growth in cash flow and proactive adjustments made in operations present a cautiously optimistic view of future engagements in the industrial metals sector. Through ongoing modernization and savvy market maneuvers, Ryerson continues to position itself as a formidable player prepared to tackle upcoming challenges in 2025 and beyond.