Ryerson Inc. (RYI) Reports Prelim. 3Q18 Revenue Guidance Above Consensus

Ryerson Holding Corporation (NYSE: RYI) today provided guidance for its third quarter ending September 30, 2018. The Company anticipates revenues in the range of $1,230 million to $1,240 million for the third quarter of 2018, or $1,045 million to $1,055 million on a same-store basis excluding the impact of the Central Steel & Wire Company, compared to revenue of $864 million in the third quarter of 2017 and $1,057 million the second quarter of 2018. Average selling prices in the third quarter of 2018 are expected to be higher compared to the second quarter of 2018. Third quarter same-store shipments are expected to be down slightly compared to the second quarter of 2018 driven by one fewer shipping day, impacts from extreme weather events in Iowa and the Carolinas, and normal third quarter seasonality. The Company expects third quarter 2018 net income attributable to Ryerson Holding Corporation in the range of $77 million to $80 million, which includes a gain on bargain purchase from the acquisition of the Central Steel & Wire Company valued at approximately $73 million subject to final measurement. Ryerson expects LIFO expense in the range of $31 million to $34 million. Adjusted EBITDA, excluding LIFO is expected to be between $84 million and $87 million for the third quarter of 2018. Ryerson reported third quarter 2017 net income attributable to Ryerson Holding Corporation of $1.7 million and second quarter of 2018 net income attributable to Ryerson Holding Corporation of $17.5 million. Adjusted EBITDA, excluding LIFO was $37.7 million in the third quarter of 2017 and $106.6 million in the second quarter of 2018. A reconciliation of Adjusted EBITDA, excluding LIFO to net income attributable to Ryerson Holding Corporation is included below in this news release.

Ryerson continues to see strong end market demand when viewed against the year ago period. According to the Metal Service Center Institute, U.S. service center volumes have increased by nearly six percent through August 2018 year-to-date compared to the prior year period. U.S. Industrial production rose by 4.9 percent in August 2018 year-over-year, the largest increase experienced since December 2010. Carbon and aluminum imports remain constrained, down 12 percent and 17 percent respectively through July 2018, despite higher domestic demand due to continued trade actions. Given these conditions, Ryerson anticipates shipments to remain stronger in the fourth quarter of 2018 compared to the average industry volume decline of 7 percent sequentially from the third quarter experienced over the past five years as measured by the MSCI.

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