Ryerson Q2 revenue rises 28% after Olympic Steel merger
RYI•Outlook for Q3
- Ryerson expects Q3 shipments to decline 3% to 5% sequentially due to normal seasonality
- Company sees Q3 net sales between $1.87 bln and $1.95 bln
- Ryerson expects Q3 net income of $19 mln to $21 mln, or $0.37 to $0.40 per share
Q2 results and synergy gains
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U.S. industrial metals distributor's Q2 revenue rose 28% sequentially after Olympic Steel merger
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Adjusted EPS for Q2 climbed to $0.52 from $0.30 in prior quarter
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Company realized $5 mln in Q2 synergies, expects to exceed first-year synergy target
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OLYMPIC STEEL MERGER - Olympic Steel contributed $564 mln in revenue and $23.5 mln in adjusted EBITDA, with integration driving $5 mln in Q2 synergies
Operating drivers and market context
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HIGHER VOLUMES AND PRICES - Total tons shipped rose 22.6% and average selling prices increased 4.5% sequentially, with carbon steel, aluminum and stainless steel all posting gains
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MIXED DEMAND AND SUPPLY CONSTRAINTS - Demand was strong in data center and power generation projects but uneven in traditional markets; tight domestic supply and supply disruptions supported higher prices
