Ryerson 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

For additional information:     Terence R. Rogers,     VP Finance and Treasurer     773.788.3720	N E W S     R E L E A S E

RYERSON REPORTS RECORD EARNINGS PER SHARE OF $4.01 IN 2005, COMPARED

WITH $1.84 IN 2004; FOURTH QUARTER OF $0.47 VERSUS $0.01

Chicago, Illinois – February 16, 2006 – Ryerson Inc. (NYSE: RYI) today reported results for the fourth quarter and full year ended December 31, 2005. Income from continuing operations of $104.2 million, or $4.01 per diluted share, for 2005, compared with $47.4 million, or $1.84 per diluted share, for 2004. For the fourth quarter of 2005, Ryerson reported income from continuing operations of $12.3 million, or $0.47 per diluted share, compared with $260,000, or $0.01 per diluted share, for the fourth quarter of 2004.

“Our record 2005 results reflect our success integrating Integris Metals, acquired in January 2005, and strong market conditions, despite declining prices during 2005 from year-end 2004 levels,” said Neil S. Novich, Chairman, President, and CEO of Ryerson. “In 2005, we achieved integration cost savings of approximately $12.5 million and annualized cost savings of $16 million, at a year-end run rate. And our strong operating cash flow of $320 million enabled us to make excellent progress reducing debt levels.”

Annual and quarterly results in 2005 reflect a number of items, primarily related to actions taken to facilitate the integration of Integris operations and capture the full value of the acquisition.

Results in 2005 included:

• A one-time reduction in gross profit of $9.6 million, or $0.22 per share, related to the previously disclosed change to a uniform LIFO inventory accounting method;

• A $5.0 million pretax, or $0.11 per share, favorable adjustment to cost of goods sold, to correct the stainless nickel surcharges reflected in inventory in Canada;

• A pretax pension curtailment gain of $21.0 million, or $0.49 per share, on freezing Integris Metal’s non-union plan;

• A pretax gain of $6.6 million, or $0.15 per share, on the sale of property;

• A pretax restructuring charge of $4.0 million, or $0.09 per share;

• And a $2.1 million, or $0.08 per share, net favorable income tax adjustment.

Results in 2004 included:

• A pretax restructuring charge of $3.6 million, or $0.08 per share;

• A pretax gain of $5.6 million, or $0.13 per share, on the sale of assets;

• And an income tax benefit $1.9 million, or $0.07 per share, attributable to the reassessment of the valuation allowance for a deferred tax asset.

The fourth quarter of 2005 included:

• A reduction in gross profit of $3.1 million, or $0.07 per share, related to the fourth-quarter share of the $9.6 million annual impact of the change to a uniform LIFO inventory accounting method. (See selected income and balance sheet data, which follows, for restated prior quarter results, reflecting the application of the change in LIFO method retroactive to January 1, 2005.)

• A $4.4 million pretax (of the $5.0 million annual amount), or $0.10 per share, favorable adjustment to cost of goods sold to record stainless nickel surcharges in Canada;

• A pretax restructuring charge of $0.7 million, or $0.02 per share;

• And a $1.7 million, or $0.06 per share, favorable tax adjustment.

The fourth quarter of 2004 included:

• A pretax gain of $0.9 million, or $0.02 per share, on the sale of assets;

• And a $1.9 million, or $0.07 per share, income tax benefit, attributed to the reassessment of the valuation allowance for a deferred tax asset.

Fourth-Quarter Performance

Fourth quarter 2005 sales of $1.3 billion increased 44.4 percent from the fourth quarter of 2004, due to the acquisition of Integris, and declined 7.8 percent, sequentially, from the third quarter of 2005, primarily due to fewer shipment days. For the fourth quarter of 2005, tons shipped increased 17.8 percent, and the average selling price increased 22.7 percent, year-over-year. Sequentially, tons shipped declined 7.2 percent, or 1.0 percent on a per day basis, reflecting normal seasonal slowness, while the average selling price per ton declined 0.7 percent from the third quarter of 2005.

Gross profit per ton was $271 in the fourth quarter of 2005, including a $5 per ton benefit related to the nickel surcharge adjustment, compared to $182 in the fourth quarter of 2004 and $267 in the third quarter of 2005. Gross margins of 17.0 percent in the fourth quarter of 2005 compared with 14.0 percent in the fourth quarter of 2004 and 16.7 percent in the third quarter of 2005.

Operating expenses per ton were $232, compared with $190 in the third quarter of 2005 and $175 in the year-ago period. Third quarter 2005 expense per ton of $190 included a $31 per ton benefit from the pension curtailment gain and gain on sale of assets. Year-over-year gross profit and operating expense comparisons were significantly affected by the inclusion of Integris in 2005.

Interest expense was $16.3 million in the fourth quarter of 2005, compared with $19.9 million in the third quarter of 2005 and $7.8 million in the fourth quarter of 2004. The year-over-year increase reflects the debt used to fund the acquisition of Integris Metals and higher working capital requirements. The sequential decline is the result of the company’s reduction of debt levels.

Comparing the fourth quarter of 2005 with pro forma fourth quarter 2004—which assumes that the acquisitions of J&F Steel and Integris Metals had occurred on January 1, 2004—net sales declined 7.8 percent, year-over-year, on a 4.5 percent decline in tonnage. The fourth quarter of 2005 operating profit of $31.9 million compared favorably to pro forma operating profit of $26.7 million in the fourth quarter of 2004.

Full-Year Performance

For the full year, sales increased 75.1 percent to $5.8 billion on a 24.0 percent increase in tons shipped and a 41.2 percent increase in the average selling price per ton. Gross profit per ton expanded to $280 in 2005, compared to $200 in 2004. 2005 operating expenses per ton were $212, compared to $166 in 2004. On a pro forma basis, net sales increased 6.9 percent, and operating profit grew 13.6 percent in 2005.

Financial Condition

In the fourth quarter of 2005, Ryerson generated cash flow from operations of $192.6 million, including a $112.7 million seasonal reduction in accounts receivable and a $60.3 million reduction in inventory. As a result, the company reduced debt by $205.5 million during the quarter, ending the year with a debt-to-capital ratio of 61.5 percent, compared to 67.2 percent at the end of the third quarter of 2005. Availability under its credit facility increased to $575 million at the end of 2005, up from $409 million at the end of the third quarter.

During 2005, Ryerson reduced debt from $1.18 billion at the close of the Integris acquisition, on January 4, 2005, to $877 million at year-end 2005, primarily due to its strong operating results and inventory reductions.

On February 6, 2006, Ryerson announced the signing of a definitive agreement to sell certain assets related to the oil and gas, tubular alloy, and bar alloy businesses to Energy Alloys, LLC. While this $80 million revenue business is profitable, it is not a strategic fit with

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Ryerson’s core business in the U.S. The sale price includes $45.5 million of cash; receipt of a $4 million, 3-year note; and the assumption of less than $1 million of liabilities by Energy Alloys. The company expects to use the cash proceeds from the sale, which it plans to complete in the first quarter of 2006, to pay down debt. The sale is expected to generate a pretax gain of approximately $18 million.

On January 31, 2006, the collective bargaining contract for Ryerson’s Chicago facilities expired. While the members provided their union with authorization to strike, Ryerson and the union continue to negotiate and work toward a settlement. The affected locations accounted for approximately 10 percent of Ryerson’s sales in 2005.

Outlook

“In 2006, to date, overall pricing, daily volume rates, expenses per ton, and margins remain comparable to the fourth quarter of 2005,” concluded Novich. Additionally, as previously discussed, completion of the Integris Metals integration is expected to include restructuring charges of $7 million to $11 million, as well as operating expenses—primarily for physical relocation of equipment and inventory—of $5 million to $8 million. Most of these expenses are likely to occur in 2006.

“We will continue to implement our integration plan, with the goal of achieving $50 million of annualized cost savings—a majority in 2006 and the remainder in 2007. We also expect to continue to improve our debt-to-capital ratio over the course of the year.”

In November 2004, the company issued $175 million of convertible notes. There will be an impact on diluted earnings per share any time the stock price for a quarter averages more than the conversion price of $21.37. During 2005, there was no dilutive effect.

# # #

Note:    Ryerson will conduct a conference call to discuss 2005 results on Friday, February 17, 2006, at 9:00 a.m. Eastern time. The call will be simulcast on the company’s Web site, www.ryerson.com.

Ryerson Inc. is North America’s leading distributor and processor of metals, with 2005 revenues of $5.8 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, and India. On January 1, 2006, the company changed its name from Ryerson Tull, Inc. to Ryerson Inc. and adopted the ticker symbol “RYI” for its common stock listed on the New York Stock Exchange.

Business Risks: This press release contains statements that are not historical facts and are forward-looking statements. The forward-looking statements (generally identified by words or phrases indicating a projection or future expectations, such as “anticipates”, “is planning to”, “estimates”, “expects”, or “believes”) are based on the company’s current expectations, estimates, assumptions, forecasts, and projections about the general economy, industry, and

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company performance. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that could result in actual outcomes or results being materially different from those expressed or forecast. Representative factors that may affect the company’s performance include the general economy and business conditions relating to metals-consuming industries; sales volumes; pricing pressures; cost of purchased materials; management’s ability to integrate and achieve projected cost savings with the acquisition of Integris; ability to maintain or increase market share and gross profits; inventory management; the company’s ability to meet its payment obligations under its outstanding notes and other debt; potential dilutive effect of the company’s convertible notes on its earnings; required pension funding and other obligations; market competition; industry and customer consolidation; customer and supplier insolvencies; and labor relations.

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RYERSON INC. AND SUBSIDIARY COMPANIES

Selected Income and Balance Sheet Data—Unaudited

(Dollars and Shares in Thousands except Per Share and Per Ton Data)

	Fourth Quarter						Third Quarter 2005 Restated (a)			Year Ended December 31
	2005			2004						2005			2004
NET SALES	$	1,305,326		$	903,682		$	1,416,432		$	5,782,005		$	3,301,958
Cost of materials sold		1,083,428			776,891			1,180,493			4,802,593			2,738,430
Gross profit		221,898			126,791			235,939			979,412			563,528
Warehousing and delivery		100,549			66,505			101,733			405,842			250,058
Selling, general and administrative		88,843			56,488			93,580			358,913			218,358
Restructuring and plant closure costs		651			—			318			3,954			3,553
Pension curtailment gain		—			—			(21,013	)		(21,013	)		—
Gain on sale of assets		—			(927	)		(6,621	)		(6,621	)		(5,572	)
OPERATING PROFIT		31,855			4,725			67,942			238,337			97,131
Other revenue and expense, net		541			150			1,494			3,690			248
Interest and other expense on debt		(16,295	)		(7,793	)		(19,901	)		(76,224	)		(23,827	)
INCOME (LOSS) BEFORE INCOME TAXES		16,101			(2,918	)		49,535			165,803			73,552
Provision (benefit) for income taxes		3,836			(3,178	)		17,545			61,632			26,110
INCOME FROM CONTINUING OPERATIONS		12,265			260			31,990			104,171			47,442
Discontinued operations (net of tax):     Adjustment to the gain on sale of the Inland Steel Company		—			3,515			—			—			7,009
NET INCOME		12,265			3,775			31,990			104,171			54,451
Dividends on preferred stock		48			48			48			192			192
NET INCOME APPLICABLE TO COMMON STOCK	$	12,217		$	3,727		$	31,942		$	103,979		$	54,259
INCOME PER SHARE OF COMMON STOCK
Basic:
Income from continuing operations	$	0.48		$	0.01		$	1.27		$	4.12		$	1.90
Inland Steel Company—adjustment to gain on sale		—			0.14			—			—			0.28
Net income	$	0.48		$	0.15		$	1.27		$	4.12		$	2.18
Diluted:			��
Income from continuing operations	$	0.47		$	0.01		$	1.22		$	4.01		$	1.84
Inland Steel Company—adjustment to gain on sale		—			0.13			—			—			0.27
Net income	$	0.47		$	0.14		$	1.22		$	4.01		$	2.11
Average shares of common stock—diluted		26,155			25,721			26,099			25,962			25,681
Supplemental Data :
Tons shipped (000)		820			696			883			3,499			2,821
Average selling price/ton	$	1,592		$	1,298		$	1,603		$	1,652		$	1,170
Gross profit/ton	$	271		$	182		$	267		$	280		$	200
Operating expenses/ton		232			175			190			212			166
Operating profit/ton		39			7			77			68			34
Depreciation expense		7,916			4,856			8,967			35,320			21,140
(Dollars in Millions)
	12/31/2005			9/30/2005 (a)			6/30/2005 (a)			3/31/2005 (a)			12/31/2004
Cash and cash equivalents	$	27.4		$	33.1		$	25.5		$	23.7		$	18.4
Accounts receivable		611.7			724.4			758.6			798.1			465.4
Inventory at LIFO value		831.9			892.2			1,035.4			1,085.1			601.0
Addback: LIFO reserve		274.9			276.5			314.4			331.5			335.2
Current value of inventory		1,106.8			1,168.7			1,349.8			1,416.6			936.2
Net property, plant and equipment		398.4			402.7			413.1			416.1			239.3
Net deferred tax asset		129.1			133.8			158.2			152.9			161.7
Total assets		2,146.6			2,353.3			2,529.8			2,622.6			1,532.3
Accounts payable		272.7			273.1			310.9			358.5			222.3
Long-term debt (including due within one year)		877.2			1,082.7			1,249.7			1,325.3			526.2
Stockholders' equity		548.3			527.5			490.0			466.7			432.8

(a) Adjusted for the impact of the change in LIFO method retroactive to January 1, 2005.

	2005
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Cash flow from operations	$	192.6		$	177.3		$	84.8		$	(134.9	)
Capital expenditures		(8.3	)		(10.2	)		(7.2	)		(6.9	)

Supplemental 2005 quarterly data restated for impact of LIFO method change (Dollars in Thousands)	2005						First Nine Months Ended September 30, 2005
	Q1		Q2		Q3
Net income – previously reported	$	35,378	$	26,610	$	33,879	$	95,867
Less: Adjustment for change in LIFO method		164		1,908		1,889		3,961
Revised net income	$	35,214	$	24,702	$	31,990	$	91,906
INCOME PER SHARE OF COMMON STOCK – revised
Basic	$	1.40	$	0.98	$	1.27	$	3.65
Diluted	$	1.37	$	0.95	$	1.22	$	3.54

Ryerson pro forma 2004 Quarterly Data including the acquisitions

    of Integris Metals and J&F Steel and the issuances of $175 million

    Convertible Senior Notes due 2024 and $150 million Senior Notes due

    2011, as if all occurred at January 1, 2004 (unaudited)

(Dollars and Tons in Thousands)	Pro forma 2004								Year Ended December 31, 2004
	Q1		Q2		Q3		Q4
Net sales	$	1,218,082	$	1,338,811	$	1,436,238	$	1,415,883	$	5,409,014
Gross profit		233,823		246,107		239,198		223,937		943,065
Operating expenses		178,211		174,933		182,881		197,241		733,266
Operating profit		55,612		71,174		56,317		26,696		209,799
Tons shipped		981		933		903		859		3,676
Average selling price/ton	$	1,242	$	1,435	$	1,591	$	1,648	$	1,471
Gross profit/ton	$	238	$	264	$	265	$	261	$	257
Operating expenses/ton		182		188		203		230		200
Operating profit/ton		56		76		62		31		57
(Dollars in Millions)	Pro forma 12/31/2004
Cash and cash equivalents	$	22.6
Accounts receivable		706.9
Inventory at LIFO value		1,001.7
Addback: LIFO reserve		335.2
Current value of inventory		1,336.9
Net property, plant and equipment		394.5
Net deferred tax asset		184.8
Accounts payable		316.3
Long-term debt (including due within one year)		1,184.8
Stockholders' equity		432.8