RYI - Earnings call transcript Q3 2021 | Ryerson Holding Corporation

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Operator

Good day. And welcome to the Ryerson Holding Corporations Third Quarter 2021 Conference Call. Today’s conference is being recorded. At this time, would like to turn the conference over to Justine Carlson. Please go ahead.

Justine Carlson

morning. Good joining third for call. XXXX Holding Ryerson you quarter Corporations earnings Thank Officer; Executive am Eddie Officer; Accounting Mike Executive Operating with this and Burbach, Claussen, Ryerson’s Chief I Controller morning Officer. Chief Molly Lehner, Kannan, here and Chief President Vice and President our and our Jim Financial our Chief Officer; our us for Executive President Operations of Vice Orth, Q&A. John will joining be

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

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

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

Eddie Lehner

our as and than others. our it quarter, well-supported carbon augmented could thanking for chain demand but our to across continue not turn with to LIFO third quarter XX% navigate not given while baseline deep pricing it new supply as teammates needs the gross want continue sheet quarter. denied we in spot macro and compiling in continue categories Ryerson’s all elevated as we to posted and customers gratitude would ultimately consecutive secular pricing gross And of admiration any of a by highest averages this as us for we from among higher demand disruptions, and second drivers of peak meet We bright is EBITDA of XXXX the I for both to leaving fuel all price the supply executing also compounding. Pick and and morning begin discuss see Justine. at diversified through margin, record-breaking the while another of year. metals thank and a during such are results. At decarbonization and for margins the expect Ryerson dislocations. joining waning, unfulfilled descriptors level, decade generated product you, our delayed quarter levels adjusted this metals like would mix my past revenues Thank displacements excluding with consolidation balance our this we also suppliers quarter you morning industry-wide I thank records. LIFO excluding number myriad setting a to to extraordinary is

inventories sheets, improve include factors roads are the and policy, earnings, network sustainable support the Ryerson or in point investments life while of supporting company strength. intelligently power, can fiscal experiences of that consumer with consumer observing number and infrastructure All future rates. inventories positive manufacturing industrial across metal policy, strong shareholder service and onshoring restocking great of investment, from quarter materially of investment of done function a network demand things centers. a to in in tangible that coupled decarbonization, low balance enabling the our our returns. right momentum markets Record through longer asset being position, we monetary financial customer We factors end build a well, accomplishments lead demand levels spending results further ongoing re-gathering These with

Our quarter service nearly value net along pay shares. investing debt, a demonstrated XXX% long-term through value-added and higher paying a derisk liabilities, book the while quarterly in clarity year-to-date actions in repurchasing in legacy in that invested costs, down we increase dividend with as greenfield acquisition, centers,

approved Directors our per share and allocation to note plan the capital a and dividend Ryerson’s operating Board in quarterly increase. advancements Ryerson’s position, Given an financial of $X.XXX update

November earnings to underscores Our This fourth our therefore of be and record value future quarter increased to shareholders the call delivering $X.XXX now environment. commitment dividend which through reflecting our as paid discuss turn our cycle. per pricing our consistently to to to the over third on XXth will confidence will shareholders I of December share. increase while XXth will be potential trajectory dividend quarter and Mike the

Mike Burbach

quarter incremental by end categories increase appreciate tight. ended continue In throughout show price. strong future’s the prices remain of to third as aluminum LME current for curve third up but of third quarter second spot concern markets compared metals Overall products third Pricing modest of weeks specific products into with by the across the retracements. Likewise carbon of everyone. quarter, appears and in supply the and magnesium the market pricing posted signs more most of and LME across all quarter to compared X% the grades Eddie, remain remain the fourth you, to availability good supply across XX% end beginning and than fourth the carbon Thank quarter morning, the end to quarter a steel declines dynamics nickel the driven products the stainless shortages. continue quarter sheet and second the tight. by to prices of increased

XX in as positive Expanding foresee manufacturing environment, Industrial quarter predicted positive growth also rates term remaining expanding month. an year-over-year U.S. Index ISM by the also the The reported while Manufacturing for the remain above quarter. environment third Carbon by month conditions Although, Production third read each reflecting demand well macroeconomic indicators carbon prices in on in longer Pricing PMI secular be Futures each may demand peaking supported we trends. the

economic North to positive activity previous apposing fourth the MSEI Metal most bottlenecks of historically gas saw reflected stronger the that reopening shipments American or Early oil improved quarter-over-quarter, than trend day We intensified months. trends nearly quarter. exception contracted of this data weakness that represents measured seasonal industry the after markets shipments X% Just pervaded wave decline attribute the indicate quarter Service ongoing the during per with third chain experienced. a Center Institute broader which as the QX indicators as quarter. summer and by the Ryerson’s supply to industry end third American our compared softer customer pandemic North

seeing the of rather than are strong to Constrained include production demand our demand are completion we However, and constraints reporting resources believe parts. are erosion increasing and from backlogs and currently chain customers imported Supply deferral as finished products. delaying chips for we everything their transportation goods. labor,

turn Jim quarter effects we are constraints outlook. remain will over as and of consumers, I harder inventories for With appliances see to these As and furniture lean. our lawnmowers, call that, the by fourth to auto the come dealer

Jim Claussen

the market to conditions XXXX. the and our quarter strong growth in persisting to appears Mike, you, Building about constraints dynamics supply this finish reporting that in where quarter the carbon we be customers anticipate a everyone. we morning, business plateauing. chains At optimistic Thank recognize and on Mike products point discussed, placing are good fourth across

in However, we stainless have prices. seen strength aluminum continued and

continued of the expected in the to and shipments due XXXX to expect up some to average normal third range revenues costs. the $X.X $XX to to X% as volumes supply average costs chain to X%. to Ryerson fourth to is prices Therefore quarter billion quarter increase constraints. $X.X quarter of X% soften $XX fourth seasonality billion, be to anticipates inventory We sequential X% down quarter selling million, patterns compared replacement expense assuming and market LIFO to relative continue and in million fourth

these LIFO of diluted $X.XX. earnings $X.XX $XXX the to excluding to of million million to expected be in Given in to adjusted expectations be $XXX is range range and the expected are share per EBITDA,

as third from a and delivery, quarter-over-quarter fuel investment percentage company inflationary as the decreased increased selling sales the used and pressures $XX of Ryerson XX result from investment second delivery, quarter. the warehousing cash. quarter, operating nominally supply of of this as labor, X.X%. In in XX leverage resulted of of Ryerson in days inventory expense inventory XX.X%. $X administrative expenses levels to operating Turning administrative only cash on service and supplies, quarter to quarter general in the conversion a third cycle restocking asset XX management restocking days increased our up days This intentional days XX the from third selling Despite up expenses to and to in XX.X% general quarter, or normalize million million days realized previous warehousing

Asset increase to Ryerson’s first of on an September Board the Directors cash improved quarterly share. dividend distributing $X.XXX Ryerson’s per dividend XXth, has of

Our fourth XXXX stock dividend be December record of stockholders $X.XXX quarter share XX, will XX, of to XXXX. per of on payable as November common of

repurchases returned part third additional authorizes per in were of a XX,XXX approximately These purchasing as an of $XX.XX an Ryerson quarter approximately the share which quarter during repurchase approximately made million. of repurchased up at two Additionally, program share the common price XXXX. shares repurchase $X our over program we average return August, to our resulting shareholders to in the Between $XX stockholders. the the and the $X million pleased ending in of company’s to to period were year million third have of stock dividend value initiated

Molly on quarter turn call the we Now will over results. detail financial further our provide third to to

Molly Kannan

XXXX, down average Jim, in QX, the quarter, Reflective is in quarter quarter to is record you, XXXX, $XXX in growth the guidance volume a XX.X%, of expense prices of industrial of line increases third second rapid Thank of which quarters the prices compared with Gross X.X% XX.X% in metal XX.X% price up selling quarter selling to LIFO Ryerson range million. inventory XXXX the $X.XX LIFO margin good third million, the revenues and expense which second with the from gross is quarter and our XXXX. third generated In costs. for morning. of billion, third expanded communicated included outpaced $XXX margin in of within as

liabilities third LIFO, to expanded XX.X%. Net sale quarter the liability our compared income basis full to a to Holding $XXX EBITDA of a compared the the Ryerson income which third previous settlement the on pension of million share, million was to related from our charge attributable per taxes. $X.XX our $X partial is second excluding million $X associated million settlement best redemption of million million adjusted excludes since partial attained expenses efforts LIFO pension third to expected net for quarter or of Ryerson’s million Corporation Ryerson’s adjusted Corporation as which a equal XXXX. the per of assets Adjusted pension XXXX million year of put Ryerson $XX economic of perspective excluding and generated income in net pension income third quarter annuitization result in notes. exposure. diluted reducing for results into our $XX of nearly impact of related the Holding the $X.XX to continued per including LIFO. diluted Platinum basis. of million $X.XX savings annuitization margin Ryerson gain annuitization third the debt partial million present net loss income XXXX, excluding million EBITDA Year-to-date, Excluding to LIFO share. the in XXXX net for $XXX $XXX in million quarter. quarter by This second taxes to the Included Ryerson third $XXX the part third or increase income XXXX, an quarter and of quarter. acquired net $XXX value was $XX the of the in $XXX per of approximately our by This points has retirement or year compares gross Ryerson an was quarter diluted adjusted income plan share, quarter XXXX EBTIDA and on share of to of attributable of of completed the XXX or was on XXXX quarter We diluted $X.XX non-cash the adjusted quarter $XXX second was generated associated To

re-measurement of an Additionally, pension the primarily million prior and leading year in returns by liability $XX liability since end, strong of decrease to driven increasing resulted in XXXX. a U.S. discount rates partial asset Ryerson the pension accounting annuitization

second XXXX our million We utilizing repurchase also of transactions by quarter outstanding financial of from our price X.X% furthered XXX% leaseback to our proceeds transformation at secured July. a senior the in notes sale $XXX due

compared outstanding $XXX possible $XX an of the were interest Ryerson senior at in the and quarter effectively redemption as or $XXX the with they $XXX These XX% quarter, $XXX We of notes notes million million reduced million to third on to quarter. third has features price transactions our This original also executed of end debt, secured secured the a reduction XXXX to million. XXX%. to the the decrease decreased $XX we million million due expense our previous redemption a balance second million our ended of refinance annual principle. $XXX by of compared increase for net the optional

of proceeds represents XXXX $XXX as the end ratio applies of for and working in quarter the transaction million portion from of the the call efforts commercial, times our a end at a company financial investments. to target third and Ryerson’s X to of of as leaseback the EBITDA decrease, result capital operational X compared quarter XXXX our sum the million long-term $XXX of X.X made the company and to over the strategic adjusted second of quarter I to reflect our However, long-term quarter notes of redeem the of the quarter the trailing turn LIFO, sale as XX-month second low range times. well times successful With achieved the as team. as leverage third back of liquidity records financial increasing X.X this, a global a our Eddie. dedication will of transformation, down excluding corporate both In times

Eddie Lehner

Thank you, Molly.

we that our plans the of begin proof of year and XXXth with delivering better and of Ryerson’s completion business the our in hard conviction with the insight, proof can knocks will ahead. we say With times promise, on XXX-year promise

as allocation, commitments, fixed cost lower We of are experiences lower great the EBITDA now capital of passion ratios, and lower our our and value vast intrinsic machine of realization customer legacy is lower cash of purpose generation. an the intelligent opportunity higher by higher Creating capital, seeing the powered comitative enabling and equity with book in positive growth perpetual cash ones flow and effects liabilities, a future all potential. leverage human organization

more when experience life look. look the tirelessly we engender it’s years, for at two you as while like types based broader felt is for a buildnowmovement@msci.org are beyond XX, required That As inclusive and investments the a vital just our metal visiting quality for we work both why prosperity in advocating bit Give years, continue us every past of and why and and the in many the that society, ryerson.com so better sustain all. of matters, a will them and see imperative. long infrastructure a

infrastructure investment it. of a the we we Operator? it questions. need it, and profound With across without make betterment further We take see will of happen your need delay. that, because Let’s board let’s lot

Operator

will Capital take you. from Thank we And with Instructions] our KeyBank [Operator Musser ahead. question Please first Michael go Markets.

Michael Musser

morning. Hey. Good

foreign are how steel dramatically lower to how that we opportunity given prices domestic arbitrage our and quarter to just ask forward that begin from notably should wanted about normalize? prices levels think third as going First, than I just on import margins opportunities, benefited much HRC

Eddie Lehner

We the but procure, are negligible our significant of contribution in are good really imports I during Eddie. any things didn’t to Michael, or the and to holding of difficult our of product on is tend really or I -- import mean, percentage to be really gains in that coming import product This have morning. are imported really quarter. margins our said to We Canada heavy make just or percentages inventory mean, and margins quantities the wide and not to really some they terms past, our anything.

at this you’re will forward and even the arbitrage starting announcements between the see arc HRC that close curves States the on see you futures United Europe if made look based in and HRC think futures. I were that going week now earlier -- UA some of you to European already

arc if those think I come So you threads in. together, see tie that to start you will two

really that But those go as for to accumulate XXXX. and margins environment is that forward trajectory it’s pricing I that going noted because demand support some to not will see nice strong. to underpinned a still really forward, continuing healthy import, and it going is into by it demand have think was demand denied we really to I the we deferred we choose extent. we believe as think

Michael Musser

look of move or market any into your is Got as pent-up it. have as the And you’re more deferrals going end any we XXXX? we off prominently broad at result might that than that of you alluded more erosion. a seeing markets Are deferral that where rather as a there demand there demand markets

Eddie Lehner

say Mike. to back over widespread. end that, that and don’t channels going of that to broad-based think to our really just the accumulation I I and customers, through am to kick even I their end levels would end it to our we’re customers go to demand it’s out restocking customers.

it’s But it’s and think some good I got So to on that it I more. let Mike a good expound will got duration a tenure.

Mike Burbach

Yeah. Eddie, Yeah. morning, and Thanks, Mike. good

identify We to able get the is, mentioned and backlogs the much don’t in that are if supply than I increasing chips chips really be a It pretty issues can looking uses kind of be think could and products. more chain it about it for to other is good or would that for constraints. seems hear with past is demand are of the bottlenecks sort future’s end Obviously, really could But Eddie It lot the parts one these say, and the automotive that’s right. dealing any hear areas the the and labor see any that impacted they’re and hit whatever. area chips. markets people you so transportation be sectors, are others. most theme so from constraints theme all to many imported we easy pretty we sectors reasons related, that be I impacting positive days these in that’s

Michael Musser

Great. specifically third should end? And inventory into going year continue to that relates how should it then to expect as capital the in restock about saw Is that quarter? networking we the think we something forward we

Eddie Lehner

Jim, why don’t take one? that you

Jim Claussen

other levels it to position side, look our Michael. morning, our as see pieces the on base. and into customer an Good as we’re AR a we and in Really tends we that in normalized waning for was good restock service service Yeah. closely head QX inventory QX to you fairly revenue intentional really us. the expect track at Would have

Michael Musser

it. Thank you. Got

Eddie Lehner

would yeah. we -- So

would flow cash QX. be So expect to in positive we

Operator

And from we with go will take ahead. our next Advisors. Please Weber question Alan Robotti

Alan Weber

Oh! Good or morning. -- pricing of can kind changes just play to kind Can you when if you about, to talk of how environment? you’ve through that declines made

Eddie Lehner

Alan. Hi, Sure. Good morning.

around I really really when at dive a past credit the and years all you you team deep our lot look done of prologue, good sort cost to being last think and and the variablizing our we’ve XX structure. history into work of

So ready gives us cyclical the the think cycle. that revising better get we the out this ton process of have we’re proof war keep countercyclical that I if also is bottom and that have year, framework even as top you the as able plan for to we that go we’ve time pudding certainly to really war the or ton very countercyclical. there. plan we given cost at and think and to from And rebuild been we put in go that we base at we do the results I from and a look always down in and we carefully variable per manage make cyclical. and how that get sure can have it how we’ve per a plan we and case cost it But, a all up

manage the think generated and and think when work certainly way leverage great I team have it the really expense metrics other again in it expense And come. done I with counter you think So that this I the working see inevitably cycles the see demonstrated in the you capital ability by metrics to quarter. we

Alan Weber

look think several be out right? at how least, said, the you much years, the low when it should that acquisitions in years, -- the should kind say better. when five today flow and about because just look and out then you company What shape balance The really ratio leverage cash you of improve? better And at your you’re end right, you of do sheets

Eddie Lehner

good one forward Yeah. were trajectory a when Alan, again the time. trajectory see acquisitions. is a can to key did getting on our the long knew we CSW at we’ve in tell it agree work I take that it’s validated used involved for the you look When acquisition, of we while. as and some the we would got we’re you by to with a job a certainly everybody good But on initially decision we that to feedback than look that the itself going is in we for really a you more that organization. the we little great done based done

to parts investment it. organic that state have the lot we customer line to out get So when organic you CapEx on We a laid we shortage investment break at experience. and pieces make improvements sight future But there. really about have a There’s has really the ideas. There’s a wonderful to high can every work robust good of business part the to its we’ve it elemental that experience into customer the there’s drive you do that you M&A the and of thing outlook that you and good and investments type in those no of and of very strategy down the would return is, growth a pipeline. deconstruct of

would say, Given organically, to be our that market that can those high are, may it’s But got also a incremental, we market lot share are while but that we’ve at the of at grow transformative. share always look acquisitions being I ready a bar.

job. time. the want work balance We still we do more have sheet looking on always and at we’re to think I some finish make we that same to the sure

Alan Weber

going extent? right, but smaller at have, look about about you because -- -- when how my last their obviously, question, how you, to do terms Like in that? you you some when look think terms it year. than in of to if of be think this improved they EBITDA they’re companies, you about Do do acquisitions, reduce maybe you just at of much do kind evaluation may how thinking And results

Eddie Lehner

disciplined discipline. mean The we again discipline. we that past that’s industry I that think cycle way keep to stay the And think that we how about you Meaning, we and about means this it would we say I it. I understand of and think have maintain is entire is prologue.

I think, if we’ve you forward. you expect going the way acquisitions look at would same the behave done, to us

Alan Weber

Okay. Great. you Thank very much.

Eddie Lehner

Thanks, Alan.

Operator

from our Bank with will go we take ahead. of And next Fields question Matthew America. Please

Matthew Fields

Hi, Great bond this your down everyone. the maturity progress, whittling on quarter.

can housekeeping a you question, July? of million do $XX time the or XXX%, it sort next when’s another is Just next

Eddie Lehner

am ahead going going Molly to confirm believe Jim, and am go I yes. Andy to that’s that, I the I say, to ask but yes. or case,

think, July. I yeah,

Jim Claussen

That is July. the next case, Matthew. It’s

potential have million We $XX redemption. a

Matthew Fields

until becomes right? you the million last callable, bond the And do can that’s $XX Okay.

Jim Claussen

is… there So

Eddie Lehner

Yeah.

Jim Claussen

ahead, Go Yeah. Eddie.

Eddie Lehner

No. okay. ahead. Go It’s

You first.

Jim Claussen

call have million face I that we was special just if feature was XX% a to then going and of say, inequity then the… an redemption is redemption and $XX the value there of yeah, there

Eddie Lehner

Right.

Jim Claussen

… call date XXXX. is

Matthew Fields

Great.

And Okay. then…

Eddie Lehner

seem like Matt. Hey, them. Mathew, like to to our say, just Yeah. would bond they so bonds these Yeah. I Matt. seem holders

Matthew Fields

new the EBITDA kind environment balancing of age next growth over and your the or comment work Okay. to next revolver plan you given Fair in the cash that enough. of push pull with down use, shareholder care forwardXX-month can return And balance of to old so you between the and about you flow see? policy kind and kind year then, how

Eddie Lehner

you in of, countercyclical looking least amount historically that. around say, the color that’s project that, cash at at and would stored sheet industry, I the now. being just some cycles Putting counter balance Yeah. at our looking if at speaking, could cycles on and you look

trajectory very can the debt means on the ABL. do clearly we overall what the work bonds the and that of down You a terms work that and do can we on can towards paying in understand

and of X.X trailing LIFO on showing out. leverage as that we’re times times now settle basis, the ratios So effect X

towards I say can we against that think would and position returns allows cash to and profile expect future. a continue would that, I that shareholder very you free investments should a healthy balance to really for we reduction see we debt that And in Matthew. us good have ourselves find flow foreseeable the growth,

Matthew Fields

prices or turn do Do to about of the able quarter around release to think over of working to the start aspects it soften flow maybe months? you be and sort you start cash next next? this How working you capital of as few see expect to sort capital the

Eddie Lehner

off. Yeah. or working the demand of actualize have level to prices other, underpins and start EBITDA Well, than and it you I the get you’re you think, elevated to get more stay one in to if they expect to start then going capital could

that responsible the the for there. because work after from down to pay cash comes we down us. the And start a business. exceed will, so we EBITDA ABL But countercyclical, be we the that then flow that needs best of go And that’s bonds, would that in, and to we then level as cash would by driven go can we extent and yield would certainly option that the high the working capital first to

Matthew Fields

the good very much, the Okay. Eddie, Great. year. Thanks and rest luck in of

Eddie Lehner

Matt. Thanks,

Operator

[Operator Kasinathan We will next Instructions] Bank. our with question go take Sathish from Deutsche ahead. Please

Sathish Kasinathan

taking Yeah. versus the to how facilities. buy strategy? new is first decision that My Can you talk Hi. you thoughts see build latest maybe Good on for the two the morning -- question and behind my build thanks rationale on and questions. your your on about

Eddie Lehner

clarify of part you the could question? just sorry, that am I last Sathish,

Sathish Kasinathan

the in buy how mean, new I thoughts Maybe, you on facilities… the versus Yeah. see you’re investing latest build, obviously so

Eddie Lehner

Oh!

Sathish Kasinathan

industry, the or buying of is which instead much … fragmented? already consolidating

Eddie Lehner

we that area monetization because very success market part the Chicago for the had when build And supporting Yeah. then -- really the the value also Absolutely. was facilities you specifically opportunity our franchise say own land and Chicago and Northwest Well, what and those to received a was and then then for Pacific beneficiation and out an ourselves at brand I modernize And area play automation CSW figuring of those and would the of real to assets. in efficiency in a the part around with turned we well. modern customer repositioning monetization really new of and estate, notes a -- good of we the in the of had higher we’ve some facility is degrees much look with really and playing notes marketplace Seattle potential. we what the -- thought experience

customer So re-engineer part our modernization part really throughout growth, this and that conducting is we’re of to that network experience. future get that state of that to

a it’s very think logical. I So

it’s revaluation decade. a assets that on the And we the investments while advantage think profitably to just also in going network of taken over the very build more industry. marketplace and that, of do think our assets smart to of they’ve been that our something I to is for the recognized valuable opportunities required than as having think really that’s that market share in time how starting through how industry in the is be I last that’s valued over this are progression

Sathish Kasinathan

Go sorry, -- yeah. ahead, please. And Thanks. Okay.

Eddie Lehner

there we’re And that, always to I for CSW, and our are case Chicago going of service our with think that the specifically to assets say, in in to Centralia sense. those really made centers at would No. build, this in I strategy. developing pipeline the most buy terms versus in was in out opportunities M&A and and concurrent the greenfield looking Pacific accretive area Northwest buy say, we

Sathish Kasinathan

more towards facilities evaluative focused Okay. Are processing? new the

Eddie Lehner

bit? about John a to do little talk Orth, want you that

John Orth

Eddie. Sure. you, Sathish. Hi, Thank

automation see to intelligently and We value-add on both our definitely great area and to we our also are and At where a processes throughput opportunity but of focusing on service allocate looking done be perspective, these equipment what a an servicing are greenfield also processing opportunities from and can how of from and around customers. as state-of-the-art both safety plate the are what and best analyzing our our we facilities capital customers. around

Sathish Kasinathan

required your Okay. and is us processing you incremental current or remind achieve And you CapEx more your how also much for mixes XX% target? can today evaluate capital what to

Eddie Lehner

Sure.

and we to would to XX% we So, historically, at If to XX%. way measured that Sathish the it XX%. above going about was in back to it, look that XXXX brought move we’ve it looked up we XXXX, XX%

from don’t that rate to we go lot value-added it conditions towards to to tools we order value-added opportunities incremental that depreciation IRR within two years next, move more But IT value-added percentage it very we invest than investments achieve systems value-add as to allow higher we than years. accelerate our and to to what make as to a year that systems the and five CapEx with XX% of processing, attractive through standpoint. in say, Now take one need the that the of move growth and see look equipment, as a is

Sathish Kasinathan

then Okay. Yeah. and on a Congrats for one. good luck great you. quarter the Thank next

Eddie Lehner

Thank you, you. Thank Sathish. Appreciate it.

Operator

like turn It there this conference or I’d the to Lehner are back at appears any additional time. questions closing remarks. to further for Eddie no

Eddie Lehner

on again, Take our thank And full you of And for and in Ryerson. continued and virtual you. forward to season. holiday look January fourth review with for XXXX, safe, care. day you Thank results. support a year Stay your happy investor again interest our when of have we February quarter well. healthy XX, and all we Please in being and

Operator

Thank call. you today’s for your participation. concludes This

You may now disconnect.

Ryerson Holding (RYI) 7 Nov 212021 Q3 Earnings call transcript