Ryerson Reports Second Quarter 2021 Results
Leading value-added processor and distributor of industrial metals Ryerson Holding Corporation has reported second quarter revenues of USD 1.4 billion,, an increase of 23.7% compared to USD 1.1 billion for the first quarter of 2021, with average selling prices 20.1% higher and tons shipped 2.9% higher. Gross margin expanded sequentially to 18.1% in the second quarter of 2021 compared to 17.2% in the first quarter of 2021. Net income attributable to Ryerson Holding Corporation for the second quarter of 2021 was USD 113 million.
Ryerson noted sequential shipment per day improvement in our industrial equipment, food and agriculture and commercial ground transportation end-market sectors during the second quarter of 2021 and we continue to receive positive demand forecasts from these customers, despite persisting supply challenges. Consumer durable, metal fabrication and machine shop and HVAC sector end-markets saw declines relative to the first quarter of 2021 in North America on supply side constraints across labor, materials and transportation inputs.
The notable price increases in carbon steel products that began in the second half of 2020 have continued to climb as lead times remain extended. Mill capacity has been above 80% for the past several months and futures prices remain elevated through year-end. Likewise, LME aluminum gained 11% in the second quarter of 2021 and nickel prices appreciated 9%. At this point, Ryerson anticipate that prices across all three of our primary commodities will remain elevated at or near twelve-month highs through the third quarter and that price normalization will be gradual given supportive demand conditions.
Ryerson President & Chief Executive Officer Mr Eddie Lehner said "Halfway through our 179th year in business, our future has never looked brighter because of the committed resolve and adaptiveness of each of my Ryerson teammates working together to provide great customer experiences no matter the circumstances. Given the number and magnitude of the challenges encountered over the past eighteen months, we are all witnesses and participants in bringing out the best in one another. Looking back over the quarter and ahead, more signs are emerging that support a sustained manufacturing expansion featuring recyclable industrial metals that are at the epicenter of current and future societal needs. With supply still unable to meet current and anticipated demand, manufacturing order backlogs keep rolling over and extending, lending further support to favorable pricing dynamics.”
Ryerson is optimistic about the third quarter industry environment. Pricing across all three of Ryerson's primary product lines continues to increase while the Company expects volumes to follow normal seasonality patterns. Therefore, Ryerson anticipates third quarter 2021 revenues in the range of USD 1.5 billion to USD 1.6 billion with sequential average selling prices 10 to 12% higher and shipments flat to down 3% compared to the second quarter of 2021.