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Leading service centers' quarterly, year-end results.

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RYERSON INC. Record Earnings in 2005

Due to strong market conditions and its success at integrating Integris Metals into its operations, Ryerson Inc., Chicago, reported record earnings in 2005. The company posted $104.17 million in net income on $5.78 billion in net sales for the year vs. $54.45 million in net income on net sales of $3.3 billion in 2004.

Its fourth quarter was also much stronger than a year earlier with $12.27 million in net income on net sales of $1.31 billion, compared with a net income of $3.78 million on net sales of $903.68 million.

"We have made excellent progress in integrating Integris Metals (which the service center acquired in January 2005) and working toward our goal of achieving $50 million in annualized cost synergies," says Neil S. Novich, Ryerson president and chief executive officer. The majority of those synergies will be realized in 2006 with the rest the following year. "Our people really pulled together," Novich added, "enabling us to achieve better-than-anticipated synergies and sharing best practices across the whole organization"

Ryerson also reduced its debt levels by 25 percent in 2005. "Our goal is to return to our pre-acquisition leverage ratio of approximately 55 percent ... to maintain the financial flexibility to be able to make capital expenditures consistent with our long-term growth plan, pursue acquisitions and joint ventures that complement our existing operations, and maintain an adequately funded pension plan," said Jay Gratz, chief financial officer and executive vice president.

The company made another move to further work down its debt when it signed a definitive agreement Feb. 6 to sell assets of its oil and gas tubular alloy and bar alloy business to Energy Alloys LLC for $45.5 million in cash and other considerations.

"While this $80 million revenue business was profitable, it is not a strategic fit with our core business" Gratz said. The sale was expected to be complete in the first quarter.

As of mid-February, Ryerson reported demand similar to fourth-quarter levels. The carbon flat-roll market, following a volatile two-year period of price swings,...

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