Toronto Canada based steel processor & distributor Russel Metals Inc has reportd record Revenues of CAD 1,339 million, EBITDA of CAD 153 million & nt earnings of CAD 99 million for January-March 2022 quarter.Revenues of CAD1,339 million were a record and higher than the CAD 885 million in the first quarter of 2021 and CAD 1,147 million in the fourth quarter of 2021. Gross margins were 21.7% for the first quarter of 2022, which were higher than historical averages but lower than the 28.8% in the same quarter of 2021 and 26.1% in the fourth quarter of 2021. Steel market conditions rebounded significantly late in the 2022 first quarter and resulted in both revenues and margins for the last month of the quarter being higher than the average for the quarter. Adjusted EBITDA for the quarter was CAD 153 million compared to Adjusted EBITDA of CAD 129 million in the same quarter of 2021 and CAD 164 million in the fourth quarter of 2021.Each of business segments generated strong operating results in the first quarter of 2022. Metals service centers had a quarter-over-quarter increase in tons shipped of 13% on a same store basis and 19% after taking into account a full quarter contribution from the acquisition of Boyd Metals. This was accomplished in spite of weather and COVID related challenges that impacted shipping activities in the early part of the quarter. The steel distributors segment benefited from supply chain disruptions that continued to affect steel availability and our business was able to serve strong customer demand. In energy products segment, the improved prices and activity in both Canada and the US allowed business to generate higher quarter-over-quarter revenues as it benefited from the continued recovery of the energy industry.Steel prices moderated through the early part of the 2022 first quarter but rebounded significantly during March 2022, due to reduced inventory in the supply chain, further global supply chain disruptions caused by the Russian invasion of Ukraine and strong demand. In the energy sector, operating conditions continued to improve in conjunction with the increased activity in the oil and gas sector.Outlook - Russel Metals said “Demand remains strong for our metals service centers segment. Over the past year, steel prices and our margin dollars have remained above historic levels, and we expect both to remain above historical levels over the near term. New projects in the oil and gas sector and a short spring breakup should result in gradually improving demand in our energy products segment over the near-to-medium term.”
Toronto Canada based steel processor & distributor Russel Metals Inc has reportd record Revenues of CAD 1,339 million, EBITDA of CAD 153 million & nt earnings of CAD 99 million for January-March 2022 quarter.Revenues of CAD1,339 million were a record and higher than the CAD 885 million in the first quarter of 2021 and CAD 1,147 million in the fourth quarter of 2021. Gross margins were 21.7% for the first quarter of 2022, which were higher than historical averages but lower than the 28.8% in the same quarter of 2021 and 26.1% in the fourth quarter of 2021. Steel market conditions rebounded significantly late in the 2022 first quarter and resulted in both revenues and margins for the last month of the quarter being higher than the average for the quarter. Adjusted EBITDA for the quarter was CAD 153 million compared to Adjusted EBITDA of CAD 129 million in the same quarter of 2021 and CAD 164 million in the fourth quarter of 2021.Each of business segments generated strong operating results in the first quarter of 2022. Metals service centers had a quarter-over-quarter increase in tons shipped of 13% on a same store basis and 19% after taking into account a full quarter contribution from the acquisition of Boyd Metals. This was accomplished in spite of weather and COVID related challenges that impacted shipping activities in the early part of the quarter. The steel distributors segment benefited from supply chain disruptions that continued to affect steel availability and our business was able to serve strong customer demand. In energy products segment, the improved prices and activity in both Canada and the US allowed business to generate higher quarter-over-quarter revenues as it benefited from the continued recovery of the energy industry.Steel prices moderated through the early part of the 2022 first quarter but rebounded significantly during March 2022, due to reduced inventory in the supply chain, further global supply chain disruptions caused by the Russian invasion of Ukraine and strong demand. In the energy sector, operating conditions continued to improve in conjunction with the increased activity in the oil and gas sector.Outlook - Russel Metals said “Demand remains strong for our metals service centers segment. Over the past year, steel prices and our margin dollars have remained above historic levels, and we expect both to remain above historical levels over the near term. New projects in the oil and gas sector and a short spring breakup should result in gradually improving demand in our energy products segment over the near-to-medium term.”
