Ryerson Holding sees Q4 net income ($14M)-($11M)
Ryerson Holding provided guidance for its fourth quarter ending December 31, 2016 in a regulatory filing. The company anticipates seasonally lower revenue for the fourth quarter of 2016 compared to the third quarter of 2016 due to fewer shipping days. The company expects fourth quarter 2016 net loss attributable to Ryerson Holding Corporation in the range of $14M-$11M, which includes LIFO expense, net in the range of $14M-$17M. Adjusted EBITDA, excluding LIFO is expected to be in the range of $33M-$36M for the fourth quarter of 2016. Ryerson reported fourth quarter 2015 net loss attributable to Ryerson Holding Corporation of $21M, which included LIFO expense, net of $11M. Adjusted EBITDA, excluding LIFO was $14M in the fourth quarter of 2015. Ryerson's end market metrics as measured in shipments per day showed sequential quarterly growth in construction equipment and oil & gas equipment, while food processing and agricultural equipment, HVAC, and commercial ground transportation sectors experienced sequential quarterly demand declines. Product pricing and material cost dynamics were driven by hot-rolled carbon sheet price volatility that saw CRU price deflation in the period from July through October of 20% followed by CRU price inflation in November and December of 22%, thus creating some expected margin compression in the quarter.