TORONTO – Russel Metals Inc. says its net income was cut by more than half in the second quarter as revenues slipped following the removal of U.S. steel tariffs.
The metals distributor and processor says it earned $31 million or 50 cents per share for the period ended June 30, compared with $66 million or $1.07 per share a year earlier.
Revenues were $937 million, a decrease of 4.2% from $978 million in the second quarter of 2018.
The company was expected to earn 48 cents per share on $954.4 million of revenues, according to financial markets data firm Refinitiv.
Chief executive John Reid says the results were solid considering it faced declining steel prices with the removal of U.S. retaliatory tariffs in May and modest demand following an exceptional 2018.
“Steel prices appear to be nearing the bottom early in the third quarter of 2019,” he stated.
“Overall demand, while lower than 2018, remained steady in all three segments. World trade uncertainty tempered manufacturing growth particularly in the agricultural, heavy equipment, transportation and construction industries.”News from © Canadian Press Enterprises Inc. 2019