Ryerson Inc. (RYI) Q4 Revenue Misses Views

Ryerson Inc. (NYSE: RYI) reported Q4 EPS of $0.00, may not compare to analyst estimate of $0.03. Revenue for the quarter came in at $810.6 million versus the consensus estimate of $816.15 million.

• Excluding benefits from income tax reform, restructuring and other charges, impairment charges on assets, and losses on the retirement of debt, the net loss attributable to Ryerson Holding Corporation in the fourth quarter of 2017 was $3.4 million, $0.09 per diluted share, compared to a loss of $7.1 million, or $0.19 per diluted share in the fourth quarter of 2016.

Outlook Commentary

Ryerson continues to assess the impact of the Tax Reform and currently expects its effective tax rate for the full year of 2018 to be in the range of 26 percent to 27 percent. The Company expects to receive AMT credit refunds of $30 million in total with $15 million expected in 2019 and the remainder going forward. Given the substantial changes to the Internal Revenue Code, the estimated financial impacts for the fourth quarter and the full-year 2017 are subject to further analysis, which could result in changes to these estimates in 2018.

Global supply and demand fundamentals appear stronger in 2018 as a weaker U.S. dollar, lower domestic import levels, and supply-side reforms in China seem to support stronger pricing conditions in the U.S. Industrial metals commodity prices for CRU carbon coil and plate products, London Metal Exchange nickel, a key component of stainless products, and Midwest Aluminum all continued to trend higher in the first months of 2018 compared to the fourth quarter of 2017, and should lend further support and stabilization to average industry selling prices. Demand remained positive for most of our key end markets compared to last year, and Ryerson expects these conditions to continue for at least the first half of 2018. Given the supply and demand factors discussed, Ryerson expects further margin expansion in the first quarter 2018 compared to the fourth quarter of 2017.

On March 1, 2018, President Trump announced a 25 percent tariff on all imported steel products and 10 percent tariff on all imported aluminum products for an indefinite amount of time under Section 232 of the Trade Expansion Act. If formally enacted later this week as expected, we anticipate these actions to have an upward bias on pricing conditions for metal products in the U.S. for at least the first half of 2018. Ryerson supports fair trade practices that create a level playing field for suppliers, distributors, and metal end-users. For over 175 years Ryerson has worked with its customers through all seasons and cycles to deliver the best possible customer experiences to the market place. As enacted trade policy plays out in the months and potentially years ahead, we will exhaust every effort to provide supply chain continuity and solutions that add value for our customers.

For earnings history and earnings-related data on Ryerson Inc. (RYI) click here.

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