Ryerson Holding Corporation has reported its third quarter results for 2023, highlighting a net income of $35 million and an Adjusted EBITDA of $45 million. Despite a decrease in revenue and tons shipped compared to the previous year, the company maintained a stable net leverage ratio and increased its quarterly dividend. The quarter also saw the acquisition of Norlen Incorporated and operational growth initiatives.
Ryerson Holding Corporation, a prominent player in the industrial metals sector, released its financial report for the third quarter of 2023. With its headquarters firmly planted in Chicago, Ryerson has once again demonstrated resilience in a fluctuating market, achieving a commendable net income and sustaining robust cash flow.
The company's third-quarter net income was reported at $35 million, with Adjusted EBITDA at $45 million, excluding LIFO calculations. Ryerson saw a decrease in revenue, down by 19.2% year-over-year and 7.2% quarter-over-quarter, totaling around $1.25 billion. This dip was mirrored in the tonnage shipped and the average selling price per ton, which also experienced declines compared to both the previous year and quarter.
Despite these challenges, the company managed to expand its gross margin to 20.0%, a slight improvement from the second quarter's 19.4%. When LIFO impacts are excluded, the gross margin saw a contraction, reflecting the overall pressure on pricing in the current market.
Ryerson’s balance sheet remained sturdy with a total debt reduction of 23.3% from the previous year, standing at $366 million. They also succeeded in maintaining a net leverage ratio of 1.4x, demonstrating disciplined financial management.
Moreover, the quarter was marked by strategic advancements. Ryerson celebrated the acquisition of Norlen Incorporated, a move that promises to bolster its value-added processing capabilities. Furthermore, the company announced an increase in its quarterly dividend, marking it the ninth consecutive rise, indicative of a strong financial position and commitment to shareholder returns.
Operational highlights included the continued integration of recent acquisitions and the progression of organic growth projects. Notably, customer experience initiatives were at the forefront, with the opening of the University Park, Illinois service center.
Management's commentary from Eddie Lehner, Ryerson’s President and CEO, reflected a note of gratitude towards the team's efforts in sustaining a productive environment and serving the customer base reliably. He acknowledged the economic headwinds faced in the third quarter and underscored the company's strategic investments aimed at long-term growth and operational improvements.
Ryerson Holding Corporation's third-quarter results offer a mixed picture, with financial robustness evidenced by strong cash flow and disciplined expense management amidst market adversities. The company's proactive strategies, including acquisitions and customer-centric initiatives, demonstrate its commitment to sustained growth and operational excellence. With steady investments in its service network and digital infrastructure, Ryerson is poised to capitalize on future market upswings and long-term manufacturing trends in North America.