RYI - Earnings call transcript Q3 2020 | Ryerson Holding Corporation

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Operator

Good day and welcome to the Ryerson Holding Corporation's Third Quarter 2020 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Justine Carlson. Please go ahead, ma'am.

Justine Carlson

Good morning. Ryerson third joining call. XXXX for you Holding quarter Corporation's earnings Thank Officer, here Lehner, our Officer; Accounting Eddie morning Controller Kannan. President Chief I'm with Executive Ryerson's this and Chief and Molly and and Kevin John be with Executive joining Jim Richardson, for our Mike Claussen, North Presidents, Orth, Operations, American of President Q&A. our Vice us along Regional will Burbach,

that the These forward-looking you make Such on those under we ended Risk could statements those we Before statements statements. risks from and Report the materially Factors number and certain within in uncertainties that of set forth get laws. and started, impacts our are results uncertainties, Form year cause to the to let comments economic Annual federal meaning XX-K include a for differ limited include December including of call conditions forward-looking forward-looking implied by of me contain securities on XXXX. related the remind risks but this COVID-XX XX, actual the not

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

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

call the Eddie. turn I’ll Now, to over

Eddie Lehner

to navigate Ryerson you I all want I to quarter this and as environment. And well, our of call shareholders our by you our in we my all hope good morning continue the to through and morning omnipresent our all customers, colleagues, suppliers, COVID-XX thanking this Justine, you, for third joining finds thank results. us and spirits. safe, call our Thank discuss this begin

express today, gratitude as many year. pandemic. audience operations challenging hardships extend to as like day heroic those to our and course unfolding, toward in my and guidelines we continue I in work safety performance all protocols, enhance unwavering Ryerson our the communities. heartfelt data coworkers, efforts the whose to suppliers, in that bell health, health recovery recognize condolences our practicing if the most, to we, COVID-XX And who We those essential and We is team and throughout notably our our compelled that of in upon again safety mitigation dedicated As throughout and our has that of and pandemic pandemic still which while of been with it all trends to lost the this so am areas continues accordance answered during after in is lost the carefully enduring. doubt. while operate customers, the virus are which orders, observing we this directed well-being governing established essential suppression and safety thanks demonstrating all heartfelt send visited has improved have CDC whose We workers not remain jurisdictional ones further is day loved efforts. to our

revenues, excellent asset efficiency and to throughout. while expense bookings, September, consolidated from the company's quarter, advanced were Turning during the third incrementally through performance shipments, all July and margins management

low. high Pricing vertical toward of levels, million, bookings range moved through levels watermark pre-COVID a million of As at a than for than reduced with flows more $XXX more carbon. starting to followed momentum cash gaining increased then improved XX% $XXX year than Ryerson's more end-market debt with stainless, also markets. and by progressed, the Operating aluminum the of across we've toward XX-year a XX% quarter while drivers quarter, and shipments by wider pre-COVID the hit restocking

the approximately of We sheet In its our acquisition XXXX quarter XXXX, Ryerson notes. fact, through the on has debt net the the of million. house of reduced balance in did $XXX side third some refinancing the since by CS&W important work

target planned conversion, inspired bond the after adverse XX served and exercised had quarter. we ERP to senior totality, redemption realizing digitalization August obligations, leadership beyond QX for goals that capital moves Soon were plays our understood potential at additional million, an million the and benefit CS&W, very Difficulty] an further pension conversion $XX and working primary as ERP necessary as is organization, $X.X of for at of schedule. completed clear-eyed the Even the On [Technical still approximately XX that CS&W's pension CS&W to lie ahead. team an technology refinancing, conversion quarter as a September we I approximately some as was in impacts and ahead of business a vital challenges balance another and million. attainment because and in big and risk. amidst the attributable closing vision was information in which business achieving legacy modernization about made cost systems ERP conversion reducing the CS&W's and CS&W for and while reducing through of factor period in the important being that costs Ryerson step disruption while Reorganization necessary the would our of point always during challenging and through $XXX out rights the in our long-term costs pandemic's liability revenue lost We target the franchise. impacts,

Index quarter for in be beginning unusual recovery additional uneven to unknowns. threshold and of the well an some macro Managers of growth Now the expansion with of commentary, unpacking fourth September, multitude a XX. or with above U.S. The believe Purchasing indicators in the third environment consecutive we macroeconomic reported economic month readings reflected what the PMI, with the

American months. though of contraction much second shipments industrial measured as approximately Metals X% Service U.S. has contraction came contraction for period year-over-year Center Institute, period, at year-ago from May, in North in and average improved while XX.X% below three production, However, from the of the by improved severe or MSCI, quarter third XX.X%. past year-over-year the industry quarter the April reported Likewise,

noted to in pricing anticipated America prior the during up months, of carbon and as earnings no and falling our as deflating environment XXXX-XXXX Turning After capacities held call, the globally that the than more in responsively during better experienced commodities, adjusted on North quarter, than sequentially end the summer pandemic, the the demand to aluminum downturns of hot compared second. in of to prices and third at ended and bottomed October. higher increase, second LME up end have LME nickel quarter, in the quarter moving rolled to improved continued prices third the XX% September relative while by to the average the August XXXX-XXXX.

recent After have net of ton. that demand and XXXX. conditions carbon conditions stainless, probabilities moved reference as first most around with are becomes and stimulus of CRU a if the which while print that, LME and impacts, be fourth have coming for term, overall versus carbon, would line per maintain new practically pricing, a several XX-month a The of consolidation lead the keeping virus we're into quarter, and last and environment growing XXXX, relevant function of including difficult looking strength, recovery, half new spot where Longer in and blurry side LME geopolitical nickel QX are will both the sight of sheet XXXX As a supply eye tensioning on aluminum Very for of continued events latest periods. any these the times in at few several ongoing of are carbon a spot $XXX things, unwind we high, aluminum, capacity the to an relevant function re-shoring phasings steel creating of first to stability. across This U.S.-based are few weeks at as favor manufacturers. side close prices quarters. next seen on-shoring resembles

activity commercial durable, and customer and balance, Regarding improve in Compared Ryerson's volumes sectors transportation, continued the and ground all consumer over to volumes, unevenly, also food all shop, quarter to quarter. machine agricultural if America and Ryerson's sectors improved, equipment, on end per-day equipment quarter while fabrication quarter. metal HVAC North in industrial third throughout second declined construction equipment markets,

restocking North four-quarter expect to COVID-XX greater will supply manufacturing quarter, depend by turn stimulus, At going into point progress who fourth note that compared believe variables potential third conditions American macroeconomic prevails of prices quarter indicators the than confirmed restocking to and shipping improving quarter on economy side demand selling that, performance. industrial above Overall, tensioning. are is broader be uncertainty per-day XXXX Regarding with will the we an virus levels saw economic and fourth of our the to recent to recovery recovery in increasing number we pricing given Molly, trending the quarter higher two-quarter the highlights QX average a X% both of metals to which X%, I'll With to current a approximately cycle, the outlook, X% remain that X%. ongoing current third the economic quarter, cases. impacts, fiscal this call discuss third around unsettled volumes over cycle and quarter, and up the third in the beyond in we although of

Molly Kannan

the everyone. in by the $XXX.X third of of of X.X%. revenues with quarter and morning, or million million, XX.X%, to In selling margin X.X% the expense in represents quarter the of Included the compared quarter reported million million a last shipped up to second lower with up down $XXX.X quarter is of $XX.X good third XX% and prices X% which Eddie, to third shipped quarter XXXX, second compared XX.X% year. third million. the tons expanded average increase Thanks, the achieved in of $XXX.X and XXXX, to the of of Ryerson we XX.X% an in were $XX selling X.X%, million, average XXXX, lower. of of tons revenues second gross LIFO prices Compared income Gross quarter, XXXX XXXX, swing, XX.X% LIFO $XX.X same compared XXXX, when to quarter and margin quarter for

impacts counts, third including in ERP slightly liquidating to XX.X% compared quarter quarter, and XXXX. Although margins quarter the decreased incrementally second XX.X% the of of to conversion, XXXX, compared gross excluding inventory margin third managerial but accelerating to to in aged inventory throughout LIFO of increased price CS&W's in of the XXXX, the XX.X% expanded due quarter physical

general back general of or adapted $X.X expense quarter and warehousing, normalized by Compared million long-term year, production expenses the increased capacity expenses delivery, in expense selling, quarter half selling, While once to XX.X%. nearly bring to company's or structure reduced administrative quarter. the rose Ryerson the the management the last by of more realize to only warehousing, prior third strong sequentially carrying X% administrative variabilization the environment, million with delivery, shipments start anticipate cost Ryerson and we and compared as COVIDXX exhibited reductions by same X%, us demand driven accordingly. These approximately we by as leverage were it levels this pre-COVID-XX and to $XX.X

$XX.X of the taxes an Ryerson excluding third adjusted of and share, prior-year million charge $X.XX Holding share which Adjusted was completed diluted annuitization million, loss and loss $X.X pension is EBITDA, million, adjusted to Third to net million on million of and quarter Ryerson XXXX the and share on in pension of period. our of diluted $XX.X to income restructuring $XX.X compared related excluding Corporation, net expenses attributable of Ryerson's attributable settlement, for settlement $X.X increase associated of net or to quarter a the the loss to third compared million $X.XX other XXXX, $XX.X the to compared million debt, in million period. gain compared third second insurance per Corporation per liabilities July. or net income increase on was diluted related achieved notes, or refinance partial or prior-year the of share, quarter per diluted charges, quarter net in settlement Ryerson of $XX.X per Holding gain retirement $X.XX these of income $X.XX to non-cash to LIFO, the of quarter Included million or of items, in quarter $XX.X of in was the an of charge, XXXX $XX.X income XXXX third XXXX. the

of Corporation, months a results, decreased Net per or Holding debt, Ryerson the Ryerson year-to-date the as $X.XX to to nine nine items, the attributable the was compared compared of average the per to XX.X% these first of first of months or XXXX nine first Adjusted for diluted settlement share for XXXX, $X.XX loss excluding selling the XXXX, a charge, million $XX.X gain to diluted and million attributable in compared first excluding on of first of XX.X%, share same XXXX. EBITDA, diluted decreased nine and associated $X.XX XXXX. income successful XXXX of activities $XX.X operating $XX months compared period, in to million, generated billion, the cash share $X.X a of the and Corporation was Holding less period with Adjusted million end company and the diluted of during sales share Turning prices decrease a first for months quarter or a our for line $XXX.X contributing decreased days on at responsive activities or the net on pension income the working strong of continued $X.XX $X.XX restructuring million other nine environment income to gain of net also in of flow for to $XX.X taxes the million payable per at in shipped in XXXX loss revenues LIFO, Driven $XXX.X the the of days work expenditures, in nine quarter management of XX.X%. tons of of million days flow, the were operating compared and third period. charges, months loss first to receivable conversion and insurance settlement, significantly asset nine the months XX or the quarter was retirement a working XXXX. per Ryerson's the XX.X%. to during the in to between to flow as cycle XX third The clearly quarter free of with second XX strong for million from to $XXX.X supply by the the XX days, compared XX cycles, the quarter to from XX million, gap year-ago quarter cash cash Ryerson Consequently, the market customers of the cash also illustrated capital period. days capital company of in third management, quarter was to resulting third as compared cash calculated inventory in end $XX.X days at second the capital the months reduce and yield year-ago days XXXX. strong and was

flows, to approximately years. present and Ryerson's Eddie refinance economic again a of XX which basis. on debt by our achieve driving our year we Enabled decrease of to annuitization to lowest as mentioned, our level XX, July million have our pension liability decreased outstanding period, down through by countercyclical Additionally, $XXX expected repurchases, opportunistic $XXX debt open XX, we to significantly date continued debt quarter million exposure of as by market net as of combination continued in pension during third June XXXX. the the further, since part a savings facility also in efforts XXXX, to reducing in it result $X.X And completed September million net net cash million borrowing we a our of is net partial $XXX credit reductions, plan and value

U.S. returns. in bond XXXX. increase $XXX Ryerson Despite million position XX, of related pension down of liability As annuitization, and was primarily of net driving of million increase liability XX, expenses XXXX, million, discount and partial asset decreasing a an September expected strong accounting and a by refinance to an June of retained Ryerson to the debt, as $XXX lower completed resulted driven the pension the result of compared as liquidity remeasurement a rates $XX

to full-year XXXX of $XX.X expenditures COVID-XX revised XXXX. the million into for of As CapEx the and the nine budget through our of target quarter, capital of $XX the have we end third first invested meet expect months million

pandemic, in of XXX% accrued partial an savings amount, of a tomorrow, of After ample achieve we of Eddie's which expense thanks transaction continue cash summary, result to senior due of of interest operating balance plus price is on our liquidity notes were X.X% $X.X strong aggregate proud redemption outstanding. This principal the remain through hard of approximately the would $XXX interest. redemption, principal million. million and of scheduled the work at last strategies to is announce to debt XX, again whose the to Ryerson making maintain $XX annualized expected strong to this I progress will produced like colleagues XXXX, flows, occur execution secured us enabled once In completion improvements notes our has October throughout in Finally, reduction. million liquidity to the COVID-XX sheet month further our has enabled reiterate to transformation. us redemption the amount

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

Eddie Lehner

Molly. you, Thank

hand to As exceptionally cards call the our we dealt managed the by remarked were QX evidenced performance, our in some third well played we quarter and better as bargain. we during draw and

As life-altering company XXXX and pandemic-infused adversity. as transformation practice gave has to a through around us this dystopia real how some driving continue and XXXX reps been,

mission come is experiences however, customer in working to intelligent of organizational a that an service building and mission as working in At contribution. smarter, business, connected working back good and So closing, for complete network DNA let's industrial safely, The have great and time speed, health is of the and with of culture, centers provide the scale, our an works workforce metal workforce, safer, unquenchable time productively around together. people. and we None value-add, by a after XXXth and continuous such possible, analytics. we that, year a improvement, Ryerson, growth, without in desire to

so year. As at than its are today take of month stronger moves were we the the we tenth organization through far, we and in XXXX pandemic stock a start the

unity doing better work With forward questions. look your we in we as to that days. Let's that, keep toward Operator?

Operator

Fields ahead. Please from Matthew first Bank [Operator go Instructions] question you. from of comes Thank Our America.

Your open. line is

Matthew Fields

to sorry, structure – in to that's intention on be Did to that $XX able Is hand, tomorrow? questions. paid capital Molly. of redraw in the cash just you pay were of to want scheduled August hey couple that the ask on ABL October, of need Eddie, or for this nicely I will million XQ? down out Hey redemption sort for a you

Eddie Lehner

cash hand. hard the Hey, We're Hope can And I it's that from of hear on you tease other. our one Eddie. out it's me. Matt, out to paying from perspective, think,

going as to away. XX working been in man. quarter down feel glad we're fourth flow trends has keep we And so are Our confident cash to it down. we We're excellent. We're and improving, keep it, and that made working decision, debt, that performance going have to my noted, hours

Matthew Fields

And great. you can't for million That's Okay, but do the other can another once at I call where know XX you months. you sale then of do period, property. feature call XXX pay per $XXX another have XXX with real XX-month down special

thematically So, I you works big big talk estate the know Are obviously, real about transactions that you can you, in any did year. with can but not kind last anything one on? in us sale/leaseback a specificity, that of let any other in –

Eddie Lehner

it'll Matt, value this, there of you believe these I we've say is, on would would back we hopefully made and to that say I coming is it earnings our what that untapped stakeholders sheet. more calls. keep clear And for balance

have And speculate at only But the so sheet. say to we that. doing we align, we untapped I if that balance further, can't look another certainly transaction the prospectively all then variables value on believe would like

Matthew Fields

Okay, and very that's good helpful. Thanks luck. much

Eddie Lehner

Thanks, care. Matt. Take

Operator

Thank you.

Deutsche next Bank. Please Terry ahead. from We take Chris go will with now question our

open. is line Your

Chris Terry

A one maybe, and I'll Hope a well. Molly. Hi from Eddie at are them, questions time. just you. ask you few Thank me.

and two Thank saying shipments. Just seeing the on and the then how X% wondered the you ahead, just Q you're whole comment could I I you. to shipments, the at for recovery if seasonality think X%. forces, competing COVID looking XQ

Eddie Lehner

ask answer end color of Law but a you've got be in brought the to only I'm Mike, trends on the way, I'm well. back to you in acute of market effect now cycle good pretty would too, we half appears far far to that saying Kevin I this Chris, had what your so look shutdown, Sure. some as the by very look add QX preface to that at and that's what us going reaction exposures going has on restocking robust are. so depending terms being a now, Newton's full pandemic right its and bounce-back, as probably to

move look of fourth what the certainly indicators that trends season don't problematic are recovered markets, We But too, faster. Kevin So, been to in show the our just would going see that to been starting part well. the know a some And the ask is lagging into which But end really to QX markets of know those strength had I and COVID of as bring. latter some end lagging, automotive that good. maybe quarter. welcome we the holiday and is Mike had some around, of come had construction, sight. which comment as We're we

Mike Burbach

can then in. Kevin, Mike sorry, you Burbach. it Chris. the Oh, I'll take and first, Thanks question, jump for

as seem would to to transferred ground recovery transportation we maybe we've their think be they're far up area, touched guess need they've on we're improvements and trough the consumer to outperforming started as saw more expected two And piece, to improvements broad that ground bit and continued of into far it seeing think we're a would across which Eddie in see we then durable days. and seeing so better step-up consumer maybe little October, for to transportation in spending so I April, been the which the well a in I change few where than Those the continue I perform others, just markets. resilience a would money on that the durables. be from have has surprised how end A We through what related quicker spectrum back these that consumer QX. transportation. late I of May, October, all And of the QX. in some

into right we're not going Eddie give some now less Kevin? us has of the holidays? it virus impacts, impact vehicles, What pause. to is the happens that And billing three get sort strong. so trends RVs, some that There's virus So, reading in going certainly than the days knock boats, the ATVs, is, thing, wood, of fairly but on things. recreational do on products touched been will worse

Chris Terry

Great, thanks.

Kevin Richardson

This hard thing ever opening to but in a in is if that's year fourth saw going was think Kevin last good, what month The is volume, in was back shipments in shipments, you quarter, what if this year been at is you And quarter. to we in versus add versus QX improvement is the XX% industry we're I you the if every if quarter it. to of then go in seeing mentioned interpret only I in of was there Richardson. bookings, terms this third Eddie were comments. But his year. down QX this look And industry prior and down terms XX%

get we read, theme to improvement. really is and definitely early just good, It's the QX. gradual start we're good bookings have in off hard been a So, feel but to like a

Eddie Lehner

see durable is how welcome have a is. just has story. the bit, story, come Yes, that maybe the clearly, because I back the claw-back But which my decoupled the worst really comment XXXX, in have from really of would it's story. what and supply that back shutdowns demand to to we and and expected squeeze to supply that a us I a and through this I decoupled demand been price Chris, cascaded always two supply But comments. is the would XXXX, slow would have one to a it seems think the from that me, extent recoveries little the to Eddie. make somewhat I was of going out takes we're and real tensioning, the bit, is referenced coming lost But be there of to some economy. side mean,

Chris Terry

obviously on could few you that just just if Thanks, really I items. everyone. quarter then on strong And smaller front. here, capital working from wondered talk a a

prices And As just expectations? LIFO what XQ. are expectations your Thanks. up have in XQ, for moved then also

Eddie Lehner

– to team looked but been Yes, the and with what capital. wasn't. Ryerson no wasn't DTO working go the that of further at clocked really we cycle I say any and indicated, this in days, anything, again, did QX. an capital, morning, wouldn't eight-quarter major cycle even looked we at there at of just We has I qualifier. to some will make full managing respect exceptional job in than The working this stop, sure payable, average DTO type accounts build there the If XX.X for XX.X I

an event. conversion inventory cycle And under looked looked XX was days. receivables wasn't AP and I I it at So, solidly the cash collections, and at days

just organization and the rallied hats that now. Chris, going manage the hard it's if working whole to to really, off think in had capital. call Ryerson I So team say how to I to right the be to gross side, it it's modestly would cash starts bet, coming We're QX, And depend higher-cost maybe say shipments. far. so I'd on good in, how that looks quickly margin flow positive on inventory but to going on against profile balanced The

forward to some bungee think such lot be though demand quarter the going moment. to these that I it looking the economic seem we're going again, would of where play for jump to and industry, expanding continues tenor other offset on fiscal say generation depends as would go into the QX, at in be that in there's qualify of, to we you got of that costs stimulus and on different the major the be greater modestly continues all positive, we statements. side, is saying to you've hope because would recover, to metaphor, a just they at capital speed to are for even historical of recover, eventually here working going what we by where hopefully play, a period by and then have actually some so XX-quarter are are into where I come given that coursing that which answer drivers that factors through If paused about more things of we the might up-cycle EBITDA that where could support lot as that only X-quarter and variables demand now. underlying think just really time. financial be settling in but to But terms up, I commodity build And seems inventory of a be So in far, margins your the oscillations

Chris Terry

And on you. Thank LIFO? just

Eddie Lehner

I'm sorry?

Chris Terry

XQ? LIFO expectations for

Molly Kannan

Yes, one. take that could I

Eddie Lehner

thanks, Yes, Molly, thank you. yes, please. Oh,

Molly Kannan

Yes, Molly. question. neutral right is a Obviously, variables of expecting lot the be the think that into quarter. around will this there's Hi, now for go LIFO-neutral Chris. to expecting Thanks I be fourth we're Yeah. it calculation, a the we're for event. relatively but LIFO,

Chris Terry

of either Thanks, for you've the end you that comment just surprised some markets, your weakness you. on Thank markets? one to last end for direction Molly. wanted in on or through in the strength And major terms of then gone [moving you me anything else that parts],

Eddie Lehner

Yes, I'll find Mike kick only lot to still and of there's selection. and go over Kevin. this I'll bicycle appliance not say and a hard it's a ahead that pretty to

So, ship reasons, there’s to seeing, overseas to get from for shore. the chains, it's of crews positioned variety to particularly on that bring ships from we're a those supply dislocations whether cargoes trying

So, there's still got the around supply a the you've demanding lot of dislocation express home. And in chain. then

so to try contractor these home days. the with do – appliances, And a anything home finding furnishings,

blow-out seen even May. recoveries you've in they're were who can really who So see you've and spending trends in spend But it didn't and mean, I can't on. that seen there's Ford's automotive. a back think we real money bifurcation certainly good quarter, between and we April and possible what

as And so to I markets. end comment ask Mike and Kevin around my those would would well. comments be

Mike Burbach

again. Chris, Mike this is

been to market-to-market. fascinating pretty well. watch, given the Eddie nuances recovery I The from think hit has it

working. as and but been Some and are and way consumer thought it incredibly around products strong have some now are as before, us, going it's I right the touched one busy on wouldn't surprised into have they that today, that's would products areas like

markets really that go of into the healthcare that vehicles, entire think have start okay about medical through You pandemic. been sort that to And products know, you other supplies, emergency industries, there's fairly things.

things oil own, those So, slight very up slightly. and QX Maybe just have held have up. in in surprise some and ticked gone gas their cases is

pretty having year. Okay, that but in challenging put it's perspective; a

QX. been mixed very just back a starting point, as low that, but that's So, trend overall a but the up very slightly touched it's Eddie than on, has starting bag, generally early up, speaking, from other

continues. trend that October, in far so And

Chris Terry

Thanks, there? more on the One comments everyone, XQ, details. your for margins just on any expectations for the

Eddie Lehner

I the looks margin good. mean Yes, profile

play, the in I would are given the are profile just margin continues, hope materials, the the year. as so all best that script variables we looks they've we say conditions and it pricing even in referenced good, mentioned, the been and that but And in we

Chris Terry

actual No quarter? on range the margin for Okay. the you're expecting

Eddie Lehner

I wouldn't really but better. proffer point, an at estimate this certainly

Chris Terry

best the for Thanks answers. everyone. Okay. the All

Eddie Lehner

Thank care. you, Chris. Take

Operator

our go from Thank BMO. Instructions] Tiss you. We your Joel question line will Please take open. from is now ahead, next [Operator

Joel Tiss

how Hey it is guys, going?

Eddie Lehner

you? Hey how Joel, are

Joel Tiss

little and SG&A wonder, way the can is a because lower I of of Is weaker? there delivery much taking is you a has us costs? been that out it warehousing bit versus any sense give how this business just structural

Eddie Lehner

half volume as as the can pre-COVID put a we Orth and the couple can up. job make ask take where volumes of think think of team's have Joel, hang we a costs comments? might my activity I'll John on of of I and the and really pick onto that picks operations Yes. the up table to really our we feel comment job out we side Molly you take-outs the house it because the keep looking John, And I as structure. cost in what of back do has on variabilizing want center at get referenced can her to into and that done what good done to we excellent But cost to back a levels. we comments,

John Orth

on chain was really earlier, initiatives utilization as business. operational mentioned Eddie. efficiency asset particular, Joel, been focused driving the we've increase that thing. driving improvements. continuously in work with and our productivity optimize using of and is expense this to the Sure the end-to-end gains And is algorithms we've management leverage to And Thanks, networks. in we're supply the along that our asset improving

Eddie Lehner

we So, can Joel, the really a do these increase time. on period accelerates trough, of our levels. good. most it really for we the get this team, around can we depression a lot throughput developed there's footprint. footprint getting a pound project example, when where process that most structured service how well even really come dollars to as we ton work you to still analyze equipment and our And and as it's do equipment to to per we of an or cyclical process very case, But can looking where took where do a and the you and conditions we at some types and of a work And where really network cyclical the of in a in of overall do analysis,

out been come that structural good costs of back. parts across to some various won't really some the So, has done take work network

Joel Tiss

tell gaining any guys there Is are to That's excellent. if you share? way

Eddie Lehner

tell I'll you. Well,

to sectors want it When one-year end-market of we're a demand because frankly, at a So, have in of to I about period look lot out. going read know activity. what put just you to the I, over

Class seeing in X, in X. for what You're we're seeing example, Class

were look business of coming market strong for we our when instance end and QX, back, a we markets so point. some in markets actually that tailing because share weren't out end doing transactional were at gains of really at And lot

nature so shutdown impact, more went offline revenue. ERP gave and for conversion, up verticals really that in we CS&W were then we QX, to And because we where example, QX in market we some with acute share automotive noted the of the the of because high other had of gains, some that really where

look side the It's But at to So gains. Ryerson's the about been a markets and, think will share looks in transactional over looking look in of some longer here, I'd the data have we're side, to around around more that say, we issues to CS&W, of we've OEM and got to we our course that share going particularly interval. year. cross good program market of when at business, some market heavy that I have is whole we're Ryerson going side, say good. on equipment really especially the base But transactional where over currents really, a the then noted

Joel Tiss

one disruption on? aggressively change to way this your And me have mix you about thinking the you try is, into your all that is use coming opportunity it can and use, for than would to stepped-up there that's you more going Can any between this then XXXX? systems last a little bit

Eddie Lehner

going Kevin bit I'm a second, about little in a to Yes. absolutely. that talk but have just

thesis, acquire Jim acquisition, really, you into into can well. But market this and as provide the at [indiscernible] at were complemented share some in if I Claussen look segments particularly If some really we portfolio, that our insight you Central think, plate. the really able to higher-value-add look and long

systems processing think more, percentage, about of for is we've the growth. point to value-add where did doing which about the digitalization we've on we the that value-add higher doing we drive better continue well service, have so when we and equipment manufacturing, things in part to side, were certain the can say, advanced it of when some together you with those drive well and right. that bought systems, Ryerson see I'd to internal knew we're of using going [KPI], our invested really modernize company, And can But relationships, we're an work of really your very CS&W, and some better tied which you the customers, done because to we is think you where with in, strategy and that technology better value-add

your to bar XX% moving multiple fabrication burning XXXX shapes, it's high-value-add know that steps. we is but plate stock what we gone we've which high-value-add, cutting simple beyond So call X% and from since

I to color we've Kevin our and stop add on is to next, what X% and So, that XX%, call high-value-add whistle ask some I'd taken XX% very that from Jim would to that. curve. But

Kevin Richardson

I in getting your part have represents. capital that we what Richardson big that Hey, And well. try the it's you mix outsource OEMs see said or and at our to they're question, if been value-add back whether we've been Changing their here. to willing and it that of has environment, Joel, overall past, that want it's the the second-stage all internal about of we've deployed, cost we've I Eddie acquisitions a and think, more more as And talked Yes, opportunity to deployed this mix more where of look through in first-stage our to through strategy. capital, in think variabilize this to terms it's try made do structure, Kevin the we've processing.

or are X So, we're capabilities in X ago well really that what looks in like. now versus set profile of terms years up what of terms our equipment

feel terms progress we're very going. optimistic we've the we that in So, and made of where

Joel Tiss

awesome. you That's so much. Thank

You Thank guys of done this you. great a have transforming company. job

Eddie Lehner

Joel. Thanks, appreciate Thank that. Really you.

Operator

ahead. We question from take Gibbs Instructions] Phil go our Markets. Please next with will now [Operator KeyBanc Capital

line open. Your is

Phil Gibbs

good morning. Hi

Molly Kannan

Good morning.

Eddie Lehner

Phil. How Hi doing? you are

Phil Gibbs

general obviously, guys or what curious pricing trucking seeing are things and you and of emerging just just of whether economy, lot the availability Eddie, of Good. on moving inflationary do, side the a freight, I because know and of pressures again. terms in not in you're there

Eddie Lehner

be and a answer would in – the it not seeing that we're Well, hindsight, it's maybe yes, surprise. is

market ask look just a units But relative that they in one how I because shortage think and long-term get when capacity and going it's we've at been you and to pitch can you things tension When how it the again, be really have call on and in truck and as this surprise the they it all flatbed around segment. to. the this the when to that's about will third-party frankly, ask been of they drivers, about vans, I drivers freight through of such binary under-reported freight flatbeds, talking there industry shows and the units, you fast. Orth in availability the flatbed into I'll of – pretty Kevin you And have reefers get availability and the and goes John silent, to is organizations this. all tell and a access pretty Mike factors even

that would I John's use Kevin, area this fuel you're now anybody transportation more really in capacity. work come a are and even of and Mike comment where as think the obviously, what though I use us. a we haven't say And done could back, in economy drivers freight? so the lot on seeing But And to prices some still industry cost heading up overall as And the more Jim, I underscores whole. rebounds. And for we want could think

Kevin Richardson

thanks, pressures. Hey, you're these Eddie. And certainly did This is anticipate where not an of area we right. inflationary type

networks. developing and number logistics stops of and our the our increase able to team In we've weight of drive what utilization on average delivery. per to do increase also better some particular, truck the been I However, compliment to focused tools we've really to per around been analytics would

to really costs loads and to more into insight gaining those metrics, those by favor. we're bend our work So, able consolidate in

Eddie Lehner

really is somebody freight, just which the give really and to going to the I'll which approach others I'm they've longer-term done, team. from speak. organization, cost where work in many quick we Derek, else just Kyle, sorry, get And in to And and our improve we shout-out a efficiencies it's our structural tribute savings. so was can way And team to the for with a Elizabeth, along

I think.

Mike Burbach

I'm good. No,

John Orth

okay? that Is speak. I'll

Eddie Lehner

right, All yes.

John Orth

want I badge. of a badge. Could I those? Can of capital one you I want working a capital working wizard please? me one wizard get Yes, those, give

Phil Gibbs

What's that?

Kevin Richardson

Molly, gets capital one, too. badge. A wizard working

Phil Gibbs

guys Yes, some I'll hats. you send

Molly Kannan

great. That would be

Eddie Lehner

would great, would you. Thank be That be that great.

Phil Gibbs

your to own can't And fleet side, really years own remember but I couple a tight, ago, much last relative we this volume? do just was the of on freight if addressed time of trucking how that your you

Eddie Lehner

of say our it's know we're company-owned XPL want can in levered and businesses, more half. J.C. I more to I'm John, and in we're do anybody in but Mike, here. think to half probably chime here? Kevin, and about, going it's I we what others, pitch is But certain

Mike Burbach

Phil, this Mike is Burbach.

Phil Gibbs

Hi, Mike.

Mike Burbach

going freight we have that customer think dedicated trucks, but that's very percentage vehicle at that that vast type provider, normal our to the to hate or to of I'd exact us, comes of look channels, someone a from look mills pressures high third-party with is own whatever a of long-distance majority standpoint I it our arrangement. more on through maybe if much what for goes is a reason, or rounds, company-owned dedicated you we it's where truck of us. seeing a whether but contract people at outside if see an from very from who's it inflationary a company-owned going you Probably the or, number. about a or of business guess talk how customers high products we're us our on so number,

Phil Gibbs

Thank you.

backlogs, said you particularly we're as well, extended, on lead earlier what have good the so and mills what times steel on seeing very now bottleneck. based on a Eddie, the are based So right arguably sheet side,

obviously given bottlenecks so freight. see as saw you in other aggressively. everybody back out You've that we Any got print, today's an it pretty economy? And ripped there, bounce with GDP the fast costs down some fact emerging bottlenecks that

So, see what bottlenecks that other some Thanks. need time out to there do economy the get remedied? you in

Eddie Lehner

which Yes It kind and warehouse. around goes you distribution or question. of demand in distribution where lot exposures This do fluid the to is But warehouse you think really in sense. for are what all example, no, and one, and is of really popping, everything hit things really But ties makes and Phil, around, which capacity, is just call. now. a of and the It's together just in with warehousing on popping quick flatbed I right that's terms has a depends great your general, where on trucking been are. rebound there a

there's loaders, a automated really, more crane, and material-handling more know, equipment. forklifts, the a involved, You truck involved, and warehouse side trailer involved,

everything related to going and distribution gangbusters right the warehouse So, now. is

But by when there are we labor where, it's today. have your as say, dislocations within currents witnessed through as didn't labor so things are since the March think, what good would XXXX. not there looked at I would you That's extremes bottlenecks. some again, just one you you see frankly, bottlenecks and Depending to from the XXXX the that still on given – And we've certainly of backlog, they're places surprisingly, needs where in be and and tight but on we would they as quickly to time that don't mention the this that they certainly would them crews know is turn they're over some that assembling call, a would be name and labor efficiently bottleneck. having it's a areas, of other so not force, of wouldn't know that difficult as We we like. backlog labor have places,

Phil Gibbs

team. Thanks, Eddie job. Good and

Eddie Lehner

Phil, Thanks, it. appreciate really

Molly Kannan

Thank you.

Eddie Lehner

and and wish I XXXX, of really the we'll questions. when everyone season, we thanks, back think just of think safe, review out your And most and with really I forward got to But and QX look, for a our look we rolling. being in meaningful healthy, holiday February we all, we're everybody, of questions, you full-year.

interest thanks care, for so in much Ryerson. everybody your So take and

Ryerson Holding (RYI) 1 Nov 202020 Q3 Earnings call transcript