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Article Excerpt
Distributors of steel and aluminum reported respectable gains in the third quarter as a result of stabilizing steel prices, timely acquisitions, the boom in aerospace and prudent cost controls. Following is a synopsis of third-quarter conference calls by major service center companies.
RYERSON TULL
Gains from Integris Deal
The integration of Integris Metals into Ryerson Tull, the country's largest distributor and processor of metals, led to a solid third-quarter for the company.
Chicago-based Ryerson reported net income of $33.9 million for the third quarter, compared to $17.4 million for the same period in 2004. Additionally, the company reported sales of $1.4 billion from the 2005 third quarter, an increase of 57 percent from the third quarter of 2004, though down 6.8 percent from the second quarter of 2005.
"We posted a solid third quarter, even when compared with the year-ago quarter's peak historic pricing for carbon flat-rolled. Pricing and demand trends across our product lines were mixed. And the third quarter is seasonally slower than the first half of the year,' said Neil S. Novich, chairman, president and CEO of Ryerson Tull.
Much of the increase in net income and sales is a product of the acquisition of Integris Metals in January 2004. "The third quarter included a number of items that benefited the period and these are primarily focused around the integration of Integris. These items, including the pension curtailment gain and the gain on sale of property are primarily the result of doing specifically what we said we were going to do: sell redundant assets and extract hard-cost savings from the Integris acquisition," Novich said.
The total cost-savings as a result of the acquisition will be even greater than Ryerson Tull anticipated.
"We now believe we can generate annualized cost-savings in excess of $50 million from the merger of the two companies, compared with our original estimate of $30 million," he said.
The company has pledged to reduce its work...
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