RYI - Earnings call transcript Q3 2017 | Ryerson Holding Corporation

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Operator

Good morning. My name is Kelly and I will be your conference operator today. At this time, I would like to welcome everyone to the Ryerson’s Third Quarter 2017 Earnings Webcast and Conference Call. All lines are in a listen-only mode. After the presentation, there will be a question-and-answer session [Operator Instructions]. you. Thank Mr. Investor begin with conference. you Relations, Horwitz your may Jeff

Jeff Horwitz

Ryerson’s Holding for quarter us this Good Schnaufer. Executive Kevin Lehner, our Officer, you joining Mike North Chief Ryerson and morning and Corporation’s our Officer; Eddie Richardson here morning. Thank be Erich I’m American joining Regional third for Financial will Chief Q&A. call. XXXX with Burbach, and President two earnings Presidents,

contain a make forward-looking let started, remind those that differ on me and December of Risk Factors this set we Federal statements. results from on that forward-looking by call implied in Such our risks materially within Before Laws. annual we get uncertainties the uncertainties XX-K ended are the statements certain you cause meaning risks number the These but year report for the comments actual forward-looking to, and could forth to include, Form Securities statements XX, of under those limited XXXX. not involve

You only as place are speak and date are they future statements, the are undue these made, forward-looking performance. cautioned reliance guarantees of which of on not not to

most the is I’ll over supplement, on addition, third financial earnings site. release measures to today’s on XXXX several the available call our to in Relations filed our quarter comparable X-K directly to substitute, the A but our of is GAAP Form yesterday, measures turn comparable non-GAAP most which provided GAAP section now on not Eddie. financial remarks Web for intended are Investor In measures discussed of measures. that today the reconciliation directly non-GAAP refer the call to

Eddie Lehner

joining start this call and our for by the want morning. business Jeff I this thank us Thank their you thanking customers all quarter. past for you, to

business XX, many experiences on come. As a look in years to providing XXX customer more noteworthy milestone we for great forward November Ryerson to years reaches of

much the hurricanes provided values to areas that Ryerson We true awake seeking as those needed core difficult affected long this past communities, August return what the and its while destroyed and to by September. employees prayers storms the affected of moved affected the and normalcy. and US also members through in to was send those and a our wide affected remains all process support family its rebuilding continuing Mexico to of passing

service best nickel power The materialized. in of by and XXX third pricing and XXXX ruling the of by levels quarter by was an through aluminum July advance by that carbon, which and interrupted that quarters muted primarily high of highlighted third to maintained of after demand described compression can In the a chrome trade margin stainless LIFO deflation which commodity driven distortions metal section an across year. flows. further significant muted grew imports second was market Surprisingly and storms of slow Ryerson’s continued share discipline third continuing margins institutor quarter performance improvements capital metals, led despite cost the through third expense basis. while our Ryerson in higher and the and metal pricing service parts on MSCI compared to we center managing markets trade excluding quarter that average and hurricanes buying panic the then anticipated in never structural network. working power spurred Demand devastating center supply increased quarter and and be compressed

and quarter September. third margins guidance, rebounded and in and expected As noted August in bottomed July in our

inflationary earnings. September, delivery pressures in the negatively margin late of impacted August noted and first although for Working interruptions through the expense were the hurricane However, the lower management were quarter quarter and executed expense. capital business related well months the in in two some

matter the despite into as midst levels [stubborning] executing improved be to conditions. has appear Ryerson adept albeit improving dynamics heading optimistic pricing high environment, fourth No quarter proven margins plan. import are We its at the global at and business economic

gain generating flow improve to expect to enablers to continue initiatives our and cash margins strategic in free our the and traction We fourth quarter.

principal of in $X.X quarter the investments will support EBITDA, the were XXXX look attributable third the quarter Adjusted disciplined nine at million well third quarter in de-leveraging, to closer absolute objectives XXXX our quarter in of guidance quarter X.X% Net in given of LIFO capital income acquisition million year of for speak the of top-line XX.X% the opportunities second XXXX working financial the builds results. million third lower remain from call. aforementioned of of our to to targeted XXXX third in the smart million and growth prior September $X.X impacts $XX.X quarter detail despite Holding the compared quarter Revenues quarter year. the in third a but Corporation Erich compression. million first and prior later $XXX strategic to LIFO up Our down period. from growth balance CapEx the in excluding provided range the was to of sequentially Taking within compared XXXX sheet for second more Ryerson and expense $X.X and was XXXX. the margin months

quarter compared chrome reset surcharge XXXX, by stainless with with third to third third June stainless pricing the almost volatility the other quarters second to XXXX, average in falling than the consecutive compared hot-rolled of the industrial sequentially September, almost with perspective, to mid September carbon aluminum while has Midwest compared prices pricing starting declined quarter, still again and from X% to maintain nickel toward the a price economic period, conditions the impacted almost Stainless product Average prices third chrome the steel appeared steel XXXX after our carbon second to environment, outperform down X.X% Overall, continue stainless volatile XXXX. our quarter surcharge in two current Ryerson’s is significantly up and Ryerson’s rose back the stainless continue the quarter of now but early pricing. aluminum less XXXX prior to to significant surcharge XXX resets fluctuations in months stainless From demand prices average were prices of lower industry XX% incrementally relative carbon by been after of and fell quarter. by price selling first falling of primarily to by only before to prices for X% year-over-year, stability demand end up X% metals on XXXX. by when but due nine improve levels XXX pricing levels impacting is December demand measured the Turning in trend the in with compared through of year shipments to MSCI year XX% flat. when to to deflation.

June, U.S. function products XXX Additionally to of section X.X months import noted increased rose on in the hand center month service compared months buying. for in September, X.X driven steel a to

third Federal downstream of at imports to Looking GDP according over import despite U.S. economic to in above compared to the XXXX year factor period interruptions U.S. of steel at prior nine months X% steel compared the XX% signaling in the the demand, quarter Commerce, of exceeded period imports the September Department high U.S. in declined decline. products however to first up of weather domestic rest the U.S. year power centers industrial With U.S. U.S. improved production the growth a consecutive increased metal prior spreads narrowed significant a XX by was markets. or conditions. expectations and month elevated service according industrial for is between levels. dollar Southeast X% significant of impeding pricing at the quarter and in second U.S. the world XXth to Reserve, pricing X.X% months many assisted compared after strength zero the international A weaker

supply in Continued China, the stabilization side price all which emergent supporting magnitude and are are duration to regression. important import and reforms of

day, in markets half third the end construction Ryerson growth Ryerson Ryerson’s sequential sectors. markets, the in year-over-year quarter quarterly second market processing noted U.S. and to measured strength quarterly quarterly all with sequentially. of equipment the to Canada by year-over-year declined transportation, has when in day. shipment and construction showed and of On one X.X% industries per X% oil end relative a now in declines. fewer experienced Turning equipment up share had Consistent quarter demand XXXX Ryerson in to gains evaluating year-over-year were the and first growth volumes and food in notably the benchmarks. while the year, day markets, durables commercial and & with per and gas, nearly equipment, and gas shifting ground oil and agricultural China XXXX end in declines HVAC shipments saw compared Mexico most of volumes basis, consumer industry against

HVAC the US end we five as prior equipment For the and with rig encouraging year spending end over XXXX construction XX% construction and the Bureau. according first to year and to compared have increased counts Census nine period, continue of highs signs to market gas from the oil see their markets months

compared appear stronger nine quarter year-over-year domestic at the pricing recent U.S. ahead Looking stronger in index, lower as import XXXX to fundamentals in global the support conditions and fourth dollar a the first and levels months lower side supply China, reforms supply incrementally of and demand

price to resets and of further continue the compared volatility an Ryerson anticipates our nickel into for narrowing conditions appear comparing the key carbon and when expected remains quarter environment. impacted XXXX last will price resurgent prices, Additionally, and and declines to Ryerson With to with sheet markets these with performance. improving aluminum days continued recently balance chrome offset I pricing fewer support that, zinc to most quarter and anticipates highlights On year, along the discuss strength third Demand end positive the areas. partially seasonal conditions to fourth who call of quarter. over by quarter Erich third due will our shipments shipping fourth in hurricane normalizing fewer turn

Erich Schnaufer

Eddie and morning. good Thanks,

grew the and million with slightly prices than X.X% to of Ryerson’s tons the quarter XXXX increased the in and million were down $X.X per sales X.X% -- one revenue or quarter quarter Holding tons compared prior quarter Sequentially the XXXX $XXX.X by only third XXXX. normal $X.X with year-over-year down with the diluted in Corporation third was quarter in third to shipping the share fewer share shipped in higher million and $X.X X% is $XXX.X diluted $X.XX $X.XX less seasonal prior highlighted period. share attributable X.X% year As Ryerson the diluted third of per Net witnessed volume $X.XX down selling day quarter. his in prices to nominal which average decline per Eddie million of from by of million to in sold the remarks, X% to income of or or second the compared

quarter of compared and million income in compared third Excluding the adjusted impact was or first XXXX. the million $XX.X price XXXX quarter Warehousing, XXXX nine third million have to margin nine tons restructuring of to million of excluding period. debt, billion X.X prices of XXXX industry in was in LIFO. administrative X.X% as per selling, to margins excluding for XXXX. $XX.X sales the offset warehousing LIFO XXX months the XX.X% decline of by XXXX or quarter the the current selling XX.X% the quarter and third the which to gross nine as outpaced third demonstrated per net third increases the XXXX, Ryerson X% of prior Holding net attributable decreased XXXX XX.X% first points compared Ryerson’s XXXX to expense the quarter income basis $X.XX the by the LIFO LIFO the basis XXXX year of first XXXX the XX.X had a of a months the selling and as of Holding for the grew for million period. the average current period and charges, excluding first in in million by of compared $XX EBITDA nine of X.X $X.XX Ryerson ago leverage the period compression. declined than by year per nine XX% ago and decreased increased Net the ton of in in of decreased per X.X% been LIFO quarter compared compared of in by third of XX.X% prior costs loss XXXX. increased X.X shipments points general the material average the expense compared In quarter the first leading was delivery, quarter MSCI $XX.X to and million of Year measured months on of the prices XX.X%. to to of XX.X% as year months quarter the XXX for in for and diluted were of and cost more million X.X% as selling to margin or retirement XX.X% margin percentage share The quarter period. in was the XXXX. diluted million second Ryerson XXXX to third compared from and Revenues and XX% up prior increased months million of year delivery, expense second XX.X months general expenses LIFO shipped XXXX. for XX.X XXXX diluted or administrative in of to quarter the quarter Ryerson to margin prior to Corporation expense Ryerson's other in to Corporation share to share. income $X.XX XX.X% attributable of Gross for or million for of Included gross third first XXXX average in decreased increased quarter slowly to or nine compared the sold $XX.X same quarter the date in second of quarter the X.X

XXXX Excluding impairment X.X% XXXX. the restructuring charges, months $X.XX share and and Adjusted nine in per nine first the charges EBITDA in of million on Holding of excluding million million other income months retirement attributable to nine LIFO Ryerson the XXXX. XX.X debt XXX.X to increased first diluted to XXX of was or losses Corporation first months net of assets in and compared

quarter XXXX in XXXX to and working maintained days quarter. ago abundant to in in of days days stood of liquidity Ryerson Turning the quarter third at the XX growth second current and year liquidity in of now XX the XX supply inventories Ryerson's finance to period. capital compared the

million credit $XX Cash nine in activities from first XXXX, to to XXXX. to Ryerson’s compared availability primarily million XXXX of of increased with liquidity million. As borrowings months $XXX revolving of higher million operating $XXX in of the sources facility September in were for availability of second XX, inventory foreign on and primary compared XXXX, used receivables. $XXX first $XX months additional cash, quarter the was marketable million million Including our nine to due $XXX the total and securities

expected Ryerson demand the the expects positive Given to quarter compared fourth align seasonal normal declines in volume fourth generate quarter quarter. third to cash to to the in flows inventories

the turn conclude. back to over I’ll Now call to Eddie

Eddie Lehner

sustaining your XX to of moving shareholders, historical and been thank an anniversary with and when to our my let's yes November optimistic could and nation. enabling XXXth were value XX, the Ryerson our part Ryerson’s be call not and future determination around anniversary. questions. incredible add building got ride excited and We As and and scale, an When out through on Ryerson was us for the great honor of forward American say figured about celebrates I that more this With speed, on culture its a past analytics. want being Operator? present flag. open in customers, all It’s only suppliers founded viewed stars reaching colleagues us lengths, Ryerson there

Operator

Bank. Instructions] of comes from Jorge the line our first Deutsche Beristain from question [Operator And

Your line open. is

Jorge Beristain

if bit and shipments have in been Maybe little outperforming about guys the helping specifically markets are MSCI? could end yea-to-date terms MSCI of talk of a how you you volume which your outperform in broader you

Eddie Lehner

those the their But traction to when mature over curve. things years, last and that better there, to So those Guy old earlier second. organically. in I starting get A we've better when forward helped. were up We've I’m Laserflex think to it and we’re this growth strategic been several Metals going fashion we've see start take couple brought about year, Kevin the acquisitions to been and let doing some of and initiatives so it Mike doing as

e-commerce, that like things get things of vertical nature are things the prospecting some good like that traction centers, in to markets, marketplace. starting So

For and end and words. to markets, I ahead Mike few Kevin would a go – I'd ask say

Mike Burbach

Yes. Hi, Mike Jorge. here. Burbach

this has good end key an over got perspective that virtually at the entire from all We've look pointed serve So everything you market up when industries company, we the success. year.

the oil as wise in improvements nice in certainly, as this has been the well. Year-to-date the transportation. improvement Eddie but year also Those have to but equipment others that year-over-year have this the a we of commercial three itself industry beyond what's to gas, seen year improvements three year-to-date. we’ve & industry we've significant seen related related surprise one to of given jump and we’ve seen more and some most is Some initiatives others largest construction in so that areas change happened is out probably mentioned, ground the in improvements year-over-year and than improve seen continue that

mentioned. focus are improving model I quicker a initiatives key are and large a what’s say the largely Eddie focused There Ryerson areas better is, improving what’s the driving delivering around key on across would we better our and is So typically to but built that by customers product service a that all it on than available.

Kevin Richardson

evening. Good Richardson. Kevin

helped. like couple think those stands that hard that at energy or two quick time that going today get renewable markets is like XXXX went another Just in like looks at But Last at for looks end going in the was. the was happen. on market particular caught finish was markets of year going terms I I something to of ramp how double-digit and down particular in it increase. really truck really this are XXX. validates time year that at on example And it but it it But quick to our transportation up then up rig what’s hard back year, XXX consensus and I count to last the into going was which last better the predict just how and and on think just the this a to was XX% oil this looked us going XX% comments industry gas and to and year it’s now A Class notes be

Jorge Beristain

terms guidance, stronger X% XQ. into Perfect. of now normally a demand basically we And fourth overriding are quarter X%, normal in just that the your is which you’ve to seasonality? Would expect and going the in normal think of that about there’s you you decline some fundamentals as momentum see see less seasonal is supply said do to that

Eddie Lehner

I better ‘XX looks think I to be into into to the the we’ve seen QXs conditions going and than into these setup since XXXX are XXXX. year XXXX the mean we setup that ‘XX, looks ‘XX. QX typical had going better than going and best

I All better. that. it’s So feel like support indicators yes,

Now fragile we can we know really that the we’ve see they can But as it’s they horizon sure. be it’s in years and it turn. several best for now, seen

Operator

with Your next Levy comes Brett of from question [indiscernible] the line Company.

is line Your open.

Brett Levy

and terms bridge attribute you’ve good. it to I prices kind them, of metrics done of understand in sure is the zinc And and aluminum of -- the okay, clearly of the not of the say XX-ish. quarter XXXX to. previous mean of second I adjusted prices to of good, you all may Just moving actually between previous year’s parts, nickel was an were third mean kind obviously the put or I am kind you most is LIFO LIFO, XX-ish if of and were this chrome the this I was quarter either XXXX, the EBITDA XX-ish, or looking want And share am I were quarter if be number. quarter you if EBITDA the had

the put to something normalized or version spotlight believe to investors the XX of say a close had little then bridge less LIFO. kind that the Can of just is of some or and future. closer you it's EBITDA and a you area to region give XX all in to a reasons If an product

Eddie Lehner

Brett, this Ed. is

alright. X XX% to multiply you together share and XXX about math stainless Take by show the is can there's then that that's four And revenue some up multiply do your round X.X% that by roughly which okay. million and we Let's it bridge million.

down in we we look in powers X.X% you of and stainless ton shift, nickel the quarter of pricing imports carbon and X.X% when about sequentially and but the on and so stainless the and on per up, variable over aluminum that only and needing and and in noted which of pushed to average year on really that's that million volatility margin X.X% get that we noted bridge, year level because chrome the quarter lot if year X can not really greatest you price selling at on at of not you was number so story the you sequential in that look And single the the at but element zero the change that's down a get bridge and going headline. compression

again pricing imports should the you through margins looks start surcharge seen see stainless so on outlook like to in I or up what there to for when like when the it going to though be September stainless and and higher set sets even of So think of up prices in good see, QX. is $X.XX $X.XX by October we've November normalization rebound we'd end month be than for frankly stainless looks XXst, the selling level pretty and a good this

Brett Levy

before is question And the you there that clear the involve imports where think you ahead in reform and by and mean that made of good dynamic if about any second is you XXX. extent to customers like you kind there's can after that know part know, something bringing know talk in that boom it's a the the import an kind XXX or I of there's of way selling to but of tax [indiscernible] to kind opportunity of when is yourself of there then I actually end a is

Eddie Lehner

go makes the through to the watch want you Brown', Brett, over year 'The Pumpkin, Great I mean over XXX Charlie and again. issue

thought how the based choices going were certain were how where make to, the as action they you take year every certain think think to year out. they had company within pretty to come make within much choices going had I on I to XXX the they would

a encroaching if XX% import I import the imports a and and you levels of and lot areas of so a so keeps inland of lot of more product, more stance, So against to lot mean the looked price that's price more. U.S. coastal people going being we of imported sell you're an neutral in took at a that

So of absence you're know discussion policy trade of of XXX a portfolio it's kind level absence their least in against more portfolio of a so or would selling say that XX% think a a the about a competitive say of third which action don't normalize being to flow of that I'd finished. blended that now the a other XX% rethink with I talking everybody imports more price, really somewhat In blended more has the of or at I to choices, to get price.

Brett Levy

And you it out? think when plays you happens do XXX how do and think

Eddie Lehner

be Bret, tell you knew what statements in was business materialize we're and out well going the go acted year, so people as that to don't and run made much going statements I going our that Well, I quick we I so not those I many noted script. – there we're I on ahead were going think and and be think to rhetoric and we're to they smart. I in turned know, public knows, Nobody wish we're to to

into lot okay. the but see exports in the what look that's But the world. at their give to be imports do. at XXX and and some you the strategic relative yet of of what's material on there's term withdrawn the channel of world, when volume based that when And alter will and of to country, tactics. period short largely buying there other surprise adjustment somehow year. made a the kind a have I people to look that ‘XX the how can you places to here's Chinese I you go have in think think I of you their biggest ‘XX, the view comes, mean way

different will aluminum. need the conditions their growth So nature we I adjustments interested We is commonality as in are on mean the do as the world, domestically even in still demand what dynamic has and metal terms But is at been has oversupplied they aluminum that think, demand to as of past come suppliers, tuning have is if of doing certain metal global fluid no better. every demand, think and incrementally in more you back it's XXXX, think I the secret about which that since we in good allocate obviously, they're how coming not look really world company fine be made think they well. with based the they are just in spent suppliers not as as been supporting ‘XX.

So to plans some buying of you’re your alter choices suppliers strategic buying those an example. that as aluminum you from and have domestic by that include to

Operator

of from the from your And next question comes line Martin Englert Jefferies.

Your line is open.

Martin Englert

you Q-on-Q, headwinds So improve think Q-on-Q normal of quarter-on-quarter EBITDA into LIFO that and looking improvement of weakness seasonal seasonal a XQ and EBITDA? that your some stainless kind you can result benefits up ASPs also or do weakness the from putting LIFO rather volume expansion margin will catch stable better do there, kind all that together think

Eddie Lehner

than quarter the Well, just today around without it were here we around in I margins giving guidance conditions certainly for to call, they see better say QX. within be fourth QX will that are on as and looking pricing the

demand XX December, wildcard in left, pretty we XX we've the those so clean, have mean, I with spoken November being And shipping what are for. we've already days some got got another of

they I QX affecting factors in positive the in when business get look the QX Martin, yes, balance. on So, more qualitative think,

Martin Englert

And a be or just pricing likely an there offset then fourth trends, looking LIFO expense at quarter would there? the for the

Eddie Lehner

fourth for around quarter. expense to million the range the LIFO $XX expect would We

Operator

line BMO. question from Your the Joe next [Operator from Instructions] comes of

Your is line open.

Unidentified Analyst

just in covered what of and from maybe now, minimize the but would too. you trying if more market of help or take imports about to the and before think similar helpful? jam cost diversify I and of we is kind from, share years or have that kind the on philosophical impact your of more maybe am it think product it If the purchasing of margins. us the when five But it on coming So to side I steps your that, I just or can of a again weird little question buying some kind is a have situation it’s be it with mix, happens you low that prices your could was that, side, you’re kinds

Eddie Lehner

Yes look the so and Joe let’s markers go down. ahead put at years and let’s five

inventory management a this anywhere look to and better. systems doesn’t So and for out in where doesn’t the lot inventory existed that go dormant We’ve talked that XX% sedimentary using at take got industry that if drive it’s inventory centuries of layer you move analytics structure you’ve that got generate lot cash. about doesn’t has and our really

So more and it’s we’ve out days, down working it a element way terms taking our capital of in and nimble sense. taking and allowed taken capital and in lot to much down, of be makes improving us working making getting investments position in where of that it in positions

a of of ahead So the made of even end QX the at stainless surcharge increases. to it some lot sense bring

And as so to of that able we’re much we because of layer inventory. that are sharing not do sedimentary dormant

better I by at if today, So and that if you economy today, have talked at are look the look and really built to meaningful and ways companies prospering about this, business. are for better are shareholders and all platforms ones doing growing that growing five you if the years, have you systems the economy their project and out the that you in that the

to keep and a as about side, in that knowledge is both automation, side the And think our invest system. operational a from, gets the chain technology investments you And we side going to capsule talked pull the is and escape systems commercial our commercial platform your over chain the supply escape from correctly to faster. making gravitational in time chain noted and your a algorithmic and that system. that but business a supply on supply to we to way in and keep also and approach prices like us really want continue that we makes people gets are on that So is that we but I smarter commodity platform business and

be to of to have you get example, for and chains out able quickly. supply So really in

component that those at to XX% you trading it’s maintaining your improve that certain domestic that the time. able period at makes still really and you the then well in really portfolio are and suppliers price while to the well to metal and and to mix give you really difference in suppliers going when master the of distributors, look it balanced to up is really to the another at strategic to make match which be But quickly XX% look that so for market our and gain suppliers companies offshore looking out you majority where when relationships have comes looking a add spreads another of are get sell you can of the of And earnings you to are out over that you buy spend. a blended the look

would XX% spend that still and you most what processes systems get in will years. and and that to fast better in better down, that transportation and customer build possible. just very where identifying five things I those be quickly being with while the for So in metal, really better very, better identifying intelligence out like that looks able to of say and it in we advantageous chain continue us very That’s configure place of spend identifying to can direct supply to allows the

Kevin Richardson

the to flat I flat to would portfolio portfolio commodity which is add terms customer after side believe what our long give commodity or is in one in to the products this Eddie product is that there's a a unbalanced, take content about you're other customers the say thing looks the out you of to don’t Just million what the about just not service that's fragmentation commodity. lot customers keep are potential the there is that that more a terms we don't or and from about value-added we than like getting play that products then There're have same within we of from perspective so we and products, swings just these portfolio underlined it's commented antidote other of of exposure XX,XXX selling talking like XX,XXX. sell swings

striking it commercial side. balances So on is the also the

Eddie Lehner

and the business out of beyond we're positions going moved Ryerson mean our really out on that you able When inventory so buying sells something inventory. at can out buying that margin necessarily your this like make inventory. of things to go still dimensional customer always to of that's margins you isn't strong out in great you better where be I out its that to the proud want buying for a you they and on organization one to own comes in getting to inventory metals make buy example so when we're we cause metal have better I'm world when view want a and

And you things quickly asset our better to don't better inventory organization the improve you and on stone, that margin EDA long really-really you Right, as If your that better complements continue item it we that you sale. time, better that nice and and business an for. know for just see and the so a mapped and fast, should sharpen do making gets customers you make a still at the that most proportionally. results flips hold it

Unidentified Analyst

Real I'm but focused opportunities probably and with kind you, That just whatever I'm makes of toward know is vision are could as evaluating the just the thinking rumblings that there's know little areas about in a opening seeing you of your if I sense markets talk bit frustrated or XX you. competitors of if other And and thank virtual from years done, some and competitors that's company some you are guys you like lots then ultimate you're not maybe for a you wonder that good about from on step new interim now.

Eddie Lehner

markets we just footprint a centers made through through defense I'll but this. vertical think let expound technology through I based of small What better and some mean on the e-commerce growing prospecting but and still on customer in some, platform, Mike important we've we've small. on is better Joel we've our and inroads made Kevin aerospace seen based use and and are

that what and car, and of car electric about be whole to going frankly the going and goes very disruptive the stations. to a what the goes that more electricity lot infrastructure metal. that vehicle, charging gets infrastructure electric support to that's in you when way all around the think an has more because looking to on on at in is be that around fueled, that so We’re a number parts that of come There's

couple where spending a places those that. So let then of further we're more let, be that, time couple Mike I'll places and I'll will on of and expound Kevin

Kevin Richardson

share of us industries call platform create we from the ways opportunity already centers, We lot of lot attractive say here, I for industry all additional overall our sell, virtue this of our a the also see us, of virtually don't to about to our industries lot market there's add by on, and our the vehicle, think relatively market different key Burbach grow leverage a position headroom leveraging to and you opportunity a a think improve in I e-commerce Mike I like think network. every I and is what small participate how our the is, in business. of touched new tools we to the we sell lot are opportunities have know there's as Eddie markets so fragmented there so supply number and the value but a electric for surrounding currently product that have end

Operator

Markets. Gibbs from next the of Capital KeyBanc Phil line question Your comes from

open. is line Your

Phil Gibbs

Eddie, in up September? daily how demand did October relative to shape

Eddie Lehner

down the of percent were we September. couple terms In October, relative a

from a say seasonality I would than So September. better points typical but down couple still

Phil Gibbs

inventories space much versus bit And second, think, in I being just up across terms little of the on of terms a the QX. pretty any on they any in last know would days thoughts that both the but seen third a we've quarter in that the the a why helpful. versus hand year, I but inventory little quite bit color were down that bit be

Eddie Lehner

Phil. Sure,

storms due caused shipping versus – the out. some inventories interruptions was of some going dislocations imbalanced going our in materials what lost we that first, things, was days some to and three what versus So

other The on we bought ahead stainless. is did – thing we

carbon Class we also So well. we as to on ahead increases, the to brought continue And contract brought was several right the support in as do. thing third higher of go additional rates and and to their some business smart inventory surcharge around some stainless QX and A thing contracts the in primarily which is bill the

Phil Gibbs

Any think you thoughts on this this CapEx of terms time next and year what be? in can year

Eddie Lehner

Yes, it's going I our think typical be range. within to

to XX maintenance think XX I and growth. total

Phil Gibbs

you was together, that and perhaps pricing put guys clearly maybe pricing we why stainless And all bit all realizations sounds down like QX about that you the then for carbon on here, talked up about moving on it When how the a in reasons think for was QX? versus call little aluminum, should sideways.

Eddie Lehner

to out with look year. remainder to QX better They quarter-over-quarter. on and that – prices look I par for just say we'll get But margins plays how level. moving would the and looks stay prices of be like the see really it level be we'll

Operator

Wondrack question next the Sean from Your comes from Deutsche line of Bank.

line open. Your is

Sean Wondrack

other Just imports. surrounding comments the a couple

more it’s noted been seeing You being about from? you're think you China are think or manufactured through transshipment countries actually precipitously. What that's way talking countries its it here making these down been elsewhere do we that do that pretty inputs have up they’ve you And out but really where of coming sales Chinese there?

Eddie Lehner

been really nobody knows there's well circumvention know. I it's that look I established. to well know. of been mean, it's hard but mean that's think established I some hard how It’s circumvention, amount much to I exactly think, been pretty

So much coming I less station, how factor. factor has really don't more or become it in of think a it back, from, is of it's and Indonesia, that in it’s Europe, of But it's it’s Korea, products Australia. just a where terms

NAFTA Mexico. good of it in and more partners pretty East in You've in Canada a I past. got that's think product to the years And accounting coming it from in addition has Middle our than

Sean Wondrack

moved How have there seen from nations? about anything Russia to you CIS

Eddie Lehner

Russian But more in I mean mean products we Yes, in from Russia. in bring more product there's coming don't lot Russia. I yes product certainly. of a from has

Sean Wondrack

you or do continued find enacted working them countries? analysis, tariffs have countries have pressure they the your see that from do still And based you those been on against specific the

Eddie Lehner

are this going to to collected, longer to to a are some a those how I mean along effect. goes about tariffs to tariffs extent. still and we think [unable] understanding working how over time I on be vector basis. mean would they enforced, are positive the how some had are because case-by-case respond be it they back say of going are to period it haven’t more going countries us moving be I

Because I we in of are [indiscernible] a of see and around what in much you acknowledge think of and here’s a most could and to the you few other really it’s a exception all which filed. out be products, say absence products is with to import cases think the been a are can most products is still there’s we think your what that, higher. might to going say the that that are priced domestic But the I waiting settled, the that there, pop-in the get other more well few case is circumvention couple imports of could be have that, of thing I few all below counterparts.

example. we that import they And seen much the know And lot a people, less market if we than I so higher much companies of less of that are you’ve that. know that center other for import service or have I mean imports XX% and that noted than

importing more are that. than much So than that we’re other less much means importing that, most people

from to even when product in. factor from that because in to it’s still it’s be has advantaged coming economically somewhere it’s lead coming it times, advantage you for So folks somewhere, those bring

just to are it a we our make marketplace. and with more to have we think I this suppliers disciplined working acknowledge So truth

Sean Wondrack

how or mean have Kind different markets individual whatever markets, noted you being influenced hold one is rebar of the and or you structure that’s imports the I bar that the the is? would market rank as the merchant Turkey. I the grade so and that area negatively or of flux colder it most one the with kind from

Eddie Lehner

to it country. in of product those really, outside I simply to it’s prominent imports think win a get really say country what four and more odd and mean different really certainly years one broad-based. really are I use gets last high, is three imports. certain that one When attention But you’ve imports pretty -- seen it’s Turkey think the products. I I get attracts over normal from lot countries or

been has pretty say I would this broad-based. year So

Sean Wondrack

that. question is for you leverage. thank other my And Okay, then I surrounding guess

will target. leverage had guys think guys you think sort of of think you around XXXX? long to in can this do is something medium I take we achieve you to How near it that, achieve ‘XX kind term

Eddie Lehner

that was years We're perform back difference in clawing that a debt sight in since our couple of versus it a and environment Ryerson MSCI as about could come EBITDA back we XXXX and represented at XXXX that XXXX been to the when down looks better had and and lost well pretty and EBITDA, as pricing XX% to think of of term as reference and get And clawed XXXX. couple that prices, look could closer it into XXXX target. so what FIFO demand you million we look of Ryerson we in can if the demand revenue has that the are a X.X as majority in line looks by point the was demand XXX as shipments a about at between industry, back say years really business comes leverage we we where to XXXX did we we if to average prices on 'XX that market operating we ratio bring relative what think that versus big clear the use a And MSCI was going in back long in we like selling and did finish come net very about so deleveraging demand shipments prices. of better XXXX have we look when sort can at to back by still with exercised 'XX billion XX% I in like mean relative year not what reference a demand that at only leverage use to big say company. a demand's we'll I yet, 'XX when a of we point of about and

Sean Wondrack

and the whether happen they'll puts think begin you just direction some or So and there's it'll and progression naturally takes not. turn to

Eddie Lehner

we'll to wind off a good prices demand but know XXXX, your flow so up and on may I liquidity see level storing capital operating this was incrementally and a this 'XX build better in then there's year generation. up you where to supporting better get and wind gets big revenue in sheet and AR say but a gets benchmark and you be we'll like good demand as inventory cash leverage relative free year mean, prices and balance year start year in increase so you was hopefully 'XX as working an to see in it better relative a for

Sean Wondrack

answering for and in good questions fourth much very you quarter. Thank luck my

Operator

I'll questions the And over there call presenters. to the are no further this time. at back turn

Eddie Lehner

you again joining you the look appreciate early Really Year. us quarter we in New and being forward with this to

Operator

today's And call, conference may now this disconnect. concludes you

Ryerson Holding (RYI) 8 Nov 172017 Q3 Earnings call transcript