Russel Metals Announces 2020 Results
Mississauga Canada Headquartered Russel Metals Inc announced financial results for 2020. Net earnings for 2020 were CAD 25 million as compared to
Mississauga Canada Headquartered Russel Metals Inc announced financial results for 2020. Net earnings for 2020 were CAD 25 million as compared to net earnings of CAD 77 million in 2019. Revenues for 2020 were CAD 2.7 billion as compared to CAD 3.7 billion in 2019. Adjusted EBITDA was CAD 159 million compared to CAD 203 million in 2019. Russel Metals President and CEO Mr John G Reid said "The global pandemic created a new working environment causing us to adapt our operations as an essential industry and develop new health and safety protocols for our employees and other stakeholders. Our metals service centers and distribution operations experienced improving demand and multiple price increases in the fourth quarter which provides a springboard going into 2021. Oil prices and rig counts continued to modestly improve in the 2020 fourth quarter. Steel price increases have recently been reflected in rising energy product prices as the supply chain continues to rebalance. During the fourth quarter we continued our strategy to redeploy capital from our OCTG and line pipe energy operations and 2021 offers further opportunities to advance this initiative."
During 2020, Russel Metals implemented a number of value added processing initiatives in several regions. On December 30, 2020, Russel Metals acquired Sanborn Tube Sales of Wisconsin Inc, a leader in value-added manufacturing, for USD 13 million. Sanborn operates three tube lasers from its facility located in Pewaukee, Wisconsin and will complement our existing locations in that region. During 2020, Russel Metals expanded Trenton Georgia facility which now includes a bar storage facility, fiber tube and flat lasers. The rationalization of BC region was completed through the closure and sale of the real estate related to our Kelowna and Kitimat service centers.
Russel Metals Inc is a Canadian public metals distribution and processing company. Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three metals distribution segments: metals service centers, energy products and steel distributors.