EXHIBIT 99.1
Ryerson Tull News Release
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For additional information: Patrick J. Unzicker
773-762-2153 x 3206
For Immediate Release
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RYERSON TULL REPORTS 1998 EARNINGS;
RESULTS IMPACTED BY DECLINING MARKET CONDITIONS
Chicago, Illinois - January 25, 1999 - Ryerson Tull, Inc. (NYSE: RT)
reported a net loss of $1.4 million, or 3 cents per share, for the quarter ended
December 31, 1998, compared to net income of $10.7 million, or 27 cents per
share, in the year-ago period, before a one-time gain recorded in the fourth
quarter of 1997. For the full year, net income was $35.0 million, or 89 cents
per share, in 1998, compared with $52.2 million, or $1.33 per share, in 1997,
before one-time gains recorded in the prior year.
In the fourth quarter of 1998, net sales declined 8.7 percent on a 3.2
percent decline in tons shipped. For the full year, net sales declined 1.3
percent on a 2.9 percent increase in volume. Market share in the fourth quarter
of 1998 was an estimated 10 percent, based on data from the Steel Service Center
Institute. Full year market share was an estimated 10.1 percent in 1998,
compared with 10.2 percent in 1997.
"We were very disappointed in the company's earnings performance, which was
severely impacted by declining metals pricing and demand," said Neil S. Novich,
president and CEO of Ryerson Tull. "During 1998, however, we made significant
improvements to our buying practices, price administration, cost control and
productivity. We also increased our investment in processing capabilities and
information technology. As a result, we enter 1999 as a stronger company, well
positioned to extend our leadership in the metals service center industry."
Becoming a Fully-Independent Company
The company's merger with Inland Steel Industries (NYSE: IAD) is
anticipated to be completed in the first quarter of 1999. "Full independence
will bring important changes and benefits, including a stronger capital
structure and enlarged international
presence," continued Novich. "The merger enhances our ability to invest in our
future and deliver profitable growth, both internally and through acquisitions
like Washington Specialty Metals." Ryerson Tull announced an agreement to
acquire this eight-location metals service center specializing in value-added
stainless steel on January 7, 1999.
Ryerson Tull, Inc. is North America's largest distributor and processor of
metals, with annual revenues of approximately $2.8 billion. The company
operates over 70 facilities in North America, including a nationwide network of
service centers in the United States and through a joint venture in Mexico.
Ryerson Tull completed an initial public offering of 13 percent of its common
stock in June 1996 and trades on the New York Stock Exchange under the symbol
RT. The remaining 87 percent of the stock is owned by Chicago-based Inland
Steel Industries, Inc.
- Table Follows -
RYERSON TULL, INC. AND SUBSIDIARY COMPANIES
Selected Income Data - Unaudited
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(Dollars in Thousands except Per Share and Per Ton Data)
Year Ended
Fourth Quarter Third December 31
---------------------- Quarter --------------------------
1998 1997 1998 1998 1997
-------- -------- -------- ---------- ----------
NET SALES $623,513 $682,981 $678,809 $2,752,324 $2,789,409
Cost of materials sold 486,848 526,958 532,204 2,143,501 2,170,055
-------- -------- -------- ---------- ----------
Gross profit 136,665 156,023 146,605 608,823 619,354
Operating expenses 122,470 121,850 118,450 475,147 466,493
Depreciation and amortization 7,470 6,145 8,008 31,355 26,520
Pension curtailment gain -- 8,900 -- -- 8,900
Gain on sale of assets -- -- -- -- 8,929
-------- -------- -------- ---------- ----------
OPERATING PROFIT 6,725 36,928 20,147 102,321 144,170
General corporate and other expense,
net of income items 2,264 1,096 2,117 8,533 6,172
Interest and other expense on debt 8,562 8,393 9,086 35,044 32,572
-------- -------- -------- ---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (4,101) 27,439 8,944 58,744 105,426
Provision for income taxes (2,745)Cr. 11,635 4,207 23,749 42,622
-------- -------- -------- ---------- ----------
NET INCOME (LOSS) ($1,356) $15,804 $4,737 $34,995 $62,804
======== ======== ======== ========== ==========
EARNINGS (LOSS) PER SHARE OF
COMMON STOCK - BASIC AND DILUTED ($0.03) $0.40 (1) $0.12 $0.89 $1.60
======== ======== ======== ========== ==========
Average shares of common stock outstanding (millions)
Basic 39.3 39.3 39.3 39.3 39.3
Diluted 39.4 39.3 39.5 39.5 39.3
Supplemental Data (Excludes gain on sale of assets):
Tons shipped (000) 726 750 773 3,108 3,020
Gross profit/ton $188 $208 $190 $196 $205
Expenses/ton (2) 179 171 164 163 163
Operating profit/ton (3) 9 37 26 33 42
Cr. = Credit
(1) Excluding one-time gains, earnings per share were $0.27 in the fourth
quarter of 1997 and $1.33 for the year ended December 31, 1997.
(2) Defined as operating expenses, depreciation and amortization, divided by
tons shipped.
(3) Defined as gross profit/ton minus expenses/ton.