Ryerson Reports Third Quarter 2024 Results

Core Insights - Ryerson Holding Corporation reported a net loss of $6.6 million for Q3 2024, with a diluted loss per share of $0.20, reflecting a significant decline from a net income of $9.9 million in the previous quarter [2][6][16] - Revenue for Q3 2024 was $1.13 billion, down 8.1% from Q2 2024, driven by a decrease in tons shipped and average selling prices [2][5][16] - The company generated operating cash flow of $134.6 million, indicating strong cash management despite the loss [2][7][16] Financial Performance - Total revenue for Q3 2024 was $1,126.6 million, with 485,000 tons shipped and an average selling price of $2,323 per ton [2][3][16] - Gross margin decreased to 17.9% from 18.2% in Q2 2024, with adjusted EBITDA (excluding LIFO) at $21.0 million, down from $42.6 million in the previous quarter [3][5][6] - The company reduced inventory by $80.8 million on a FIFO cost basis compared to Q2 2024 [2][3] Cost Management and Shareholder Returns - Ryerson is progressing towards $60 million in annualized cost reductions from operating expenses [2][4] - The company returned $42.0 million to shareholders in Q3 2024, including $36.0 million in share repurchases and $6.0 million in dividends [2][8] - A quarterly cash dividend of $0.1875 per share was declared, consistent with the previous quarter [2][8] Debt and Liquidity - As of September 30, 2024, total debt was $522 million, with net debt at $487 million, showing a slight decrease from the previous quarter [2][7][16] - Ryerson's net leverage ratio was 3.8x, above the target range of 0.5x – 2.0x, but below the 10-year average [7][16] Market Outlook - For Q4 2024, Ryerson anticipates a seasonal and counter-cyclical decrease in customer shipments of 8% to 10%, with expected net sales between $1.00 billion and $1.04 billion [9][16] - Average selling prices are projected to fluctuate between a decrease of 1% and an increase of 1% [9][16]