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Russel Metals Reports Strong 2011 Results
02/16/2012 - Russel Metals Inc. announced earnings of $29 million on revenues of $712 million for the fourth quarter and earnings of $118 million on revenues of $2.7 billion for the full year 2011.
Russel Metals Inc. announced earnings of $29 million on revenues of $712 million for the fourth quarter and earnings of $118 million on revenues of $2.7 billion for the full year 2011.
Fourth Quarter Results — Earnings of $29 million ($0.47 per share) reflect a significant improvement from earnings of $15 million ($0.26 per share) for the year-ago fourth quarter. Revenues of $712 million compare to revenues of 562 million for the year-ago fourth quarter.
Full Year Results — Earnings of $118 million ($1.97 per share) are more than double the earnings of $57 million ($0.96 per share) reported for 2010. Revenues of $2.7 billion compare to revenues of $2.2 billion for 2010.
Fourth Quarter Segment Results — Revenues in the company’s metals service center segment were $375 million, a 23% increase compared to the year-ago fourth quarter of 2010. The fourth quarter is traditionally a seasonally slower quarter than the third quarter; this year, however, revenues were down only slightly from the third quarter. Operating profits for metals service centers of $21 million were almost double the year-ago fourth quarter operating profits of $12 million.
Fourth quarter revenues in the company’s energy tubular product segment were $234 million, a 20% increase compared to the year-ago fourth quarter and a 5% increase over the previous (3Q-2011). Strong operating profits continued, increasing to $17 million from the $15 million profit in the third quarter and matching the year-ago fourth quarter. For energy tubular products the fourth quarter is a historically stronger quarter as the winter drilling season opens in Canada and continues into the first quarter.
The company’s steel distributor segment reported revenues of $101 million for the fourth quarter, a 65% increase from the year-ago fourth quarter. Operating profits for the segment, $11 million, were more than double those reported in the year-ago fourth quarter.
Management Comments — "I am very pleased with our operating results for the fourth quarter,” said Brian R. Hedges, President and CEO, stated. “The positive results experienced from the beginning of 2011, continued into the fourth quarter offsetting the seasonal fourth quarter slowdowns. All of our operations had a stronger year in 2011, which is a tribute to the leadership of our operating divisions and their respective employee groups. This positive momentum has continued into the 2012 first quarter as our order intake is strong and mill price increases appear to be holding."
Russel Metals, one of the largest metals distribution companies in North America, conducts business in three metals distribution segments: metals service centers, energy tubular products and steel distributors. The company operates under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Metaux Russel Produits Specialises, Milspec, Norton Metals, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Energy Tubulars, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.
Fourth Quarter Segment Results — Revenues in the company’s metals service center segment were $375 million, a 23% increase compared to the year-ago fourth quarter of 2010. The fourth quarter is traditionally a seasonally slower quarter than the third quarter; this year, however, revenues were down only slightly from the third quarter. Operating profits for metals service centers of $21 million were almost double the year-ago fourth quarter operating profits of $12 million.
Fourth quarter revenues in the company’s energy tubular product segment were $234 million, a 20% increase compared to the year-ago fourth quarter and a 5% increase over the previous (3Q-2011). Strong operating profits continued, increasing to $17 million from the $15 million profit in the third quarter and matching the year-ago fourth quarter. For energy tubular products the fourth quarter is a historically stronger quarter as the winter drilling season opens in Canada and continues into the first quarter.
The company’s steel distributor segment reported revenues of $101 million for the fourth quarter, a 65% increase from the year-ago fourth quarter. Operating profits for the segment, $11 million, were more than double those reported in the year-ago fourth quarter.
Management Comments — "I am very pleased with our operating results for the fourth quarter,” said Brian R. Hedges, President and CEO, stated. “The positive results experienced from the beginning of 2011, continued into the fourth quarter offsetting the seasonal fourth quarter slowdowns. All of our operations had a stronger year in 2011, which is a tribute to the leadership of our operating divisions and their respective employee groups. This positive momentum has continued into the 2012 first quarter as our order intake is strong and mill price increases appear to be holding."
Russel Metals, one of the largest metals distribution companies in North America, conducts business in three metals distribution segments: metals service centers, energy tubular products and steel distributors. The company operates under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Metaux Russel Produits Specialises, Milspec, Norton Metals, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Energy Tubulars, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.
