Ryerson Tull Posts First Quarter 2001 Profit of $0.05 Per Share; Realizes Benefits of 2000 Restructuring

Apr 16, 2001, 01:00 ET from Ryerson Tull, Inc.

    CHICAGO, April 16 /PRNewswire/ -- Ryerson Tull, Inc. (NYSE:   RT) today
 announced net income of $1.3 million, or $0.05 per diluted share, for the
 quarter ended March 31, 2001. As indicated in its release dated April 4, 2001,
 Ryerson Tull credits the profit to the benefits of the corporate
 reorganization and other programs implemented in 2000.
     "During the second half of 2000, we redesigned our business to run at
 lower cost," said Neil Novich, Chairman, President, and CEO of Ryerson Tull.
 "And we remade key business processes-including the way we purchase materials
 and manage customer contracts-improving efficiency and quality.  So while
 business conditions continued to deteriorate during the first quarter, we were
 able to show a profit in the current environment."
     First quarter 2001 sales were $638 million, down 18.8 percent from the
 first quarter of 2000, on a 15.7 percent decrease in tons shipped. Gross
 profit per ton declined to $177 in the first quarter of 2001 from $182 in the
 first quarter of 2000, due to the lower average selling price per ton.  Metal
 prices continued to fall, with average selling price per ton in the first
 quarter of 2001 declining 4 percent year-over-year and 1 percent sequentially.
     Operating profit for the first quarter of 2001 was $9.5 million.  A
 $1.3 million fee associated with the company's accounts receivable financing
 was offset by a $1.3 million gain on the sale of assets.
     "In the first quarter, we realized the full benefits of the corporate
 reorganization and other programs, in line with our goal of $30 million in
 annualized cost savings," said Novich.  "Furthermore, gross margins improved
 to 21.4 percent in the first quarter of 2001-up from 21.1 percent in the year-
 ago period and 19.0 percent in the fourth quarter of 2000-due to our ability
 to take costs out of the supply chain and improve the management of account
 profitability."
     Ryerson Tull's market share for the first quarter of 2001 was an estimated
 10.5 percent, compared with 10.9 percent, in the year-ago period, based on
 data from the Steel Service Center Institute (SSCI).
 
     Recent Developments
     As previously disclosed, on March 29, 2001, Ryerson Tull completed a
 $250 million trade receivables securitization facility that will be used to
 retire its $142 million of 8.5% notes due in July 2001 and for working capital
 needs and general corporate purposes.  "We were able to secure very attractive
 rates on our accounts receivable financing-significantly less than the 8.5%
 notes being retired," said Novich.  In February 2001, Ryerson Tull amended its
 revolving credit facility.
 
     Outlook
     "As yet, we have not seen any signs of recovery in market conditions,"
 concluded Novich. "However, due to our early response to the industry slowdown
 and our success at creating a more efficient, customer-focused organization,
 we are prepared."
 
     Note:  Ryerson Tull will conduct a conference call to discuss first-
 quarter results on Tuesday, April 17, at 9:00 a.m. eastern time. The call will
 be simulcast on the company's website, www.ryersontull.com .
 
     Ryerson Tull, Inc. is North America's leading distributor and processor of
 metals, with annual revenues of $2.9 billion. The company has a network of
 service centers across the United States and in Canada and Mexico.  It also
 has investments in service center operations in Mexico and Asia, and maintains
 metal trading capabilities around the world.
 
                    RYERSON TULL, INC. AND SUBSIDIARY COMPANIES
 
                 Selected Income and Balance Sheet Data - Unaudited
        (Dollars and Shares in Thousands except Per Share and Per Ton Data)
 
                                                                       Fourth
                                                 First Quarter         Quarter
                                               2001         2000        2000
 
     NET SALES                               $638,073     $786,264    $619,682
 
        Cost of materials sold                501,786      620,251     501,674
 
        Gross profit                          136,287      166,013     118,008
 
        Operating expenses                    119,940      130,650     120,073
        Depreciation and amortization           8,154        8,371       6,740
        Special bad-debt reserve                  -            -        16,239
        Plant closure costs                       -          4,541         -
        Pension curtailment gain                  -         (4,428)        -
        Gain on sale of assets                 (1,276)         -           -
 
     OPERATING PROFIT (LOSS)                    9,469       26,879     (25,044)
 
        Other revenue and expense,
         including interest income                105           51         164
        Interest and other expense on debt     (6,749)      (6,181)     (8,183)
 
     INCOME (LOSS) BEFORE INCOME TAXES          2,825       20,749     (33,063)
 
        Provision (benefit) for income
         taxes                                  1,499        9,781     (14,173)
 
     INCOME (LOSS) FROM CONTINUING
      OPERATIONS                                1,326       10,968     (18,890)
 
        Discontinued operations (net of tax):
         Adjustment to the gain on sale of
          the Inland Steel Company                -            -        (4,785)
 
     NET INCOME (LOSS)                         $1,326      $10,968    $(23,675)
 
     INCOME (LOSS) PER SHARE OF COMMON
      STOCK
 
         Basic and Diluted:
            Income (loss) from continuing
             operations                         $0.05        $0.44      $(0.77)
            Inland Steel Company -
             adjustment to gain on sale           -            -         (0.19)
            Net income (loss)                   $0.05        $0.44      $(0.96)
 
     Dividends on preferred stock                 $48          $49         $48
 
     Net income (loss) applicable to
      common stock                             $1,278      $10,919    $(23,723)
 
     Average shares of common stock -
      diluted                                  24,966       24,814      24,817
 
 
                                                                        Fourth
                                                   First Quarter        Quarter
                                                 2001         2000        2000
     Supplemental Data :
 
        Tons shipped  (000)                       771          915         738
 
        Average selling price/ton                $828         $860        $840
 
        Gross profit/ton                         $177         $182        $160
        Expenses/ton  (a)                         166          152         172
        Operating profit/ton (b)                   11           30         (12)
 
     (a) Defined as operating expenses, depreciation and amortization, divided
         by tons shipped.
     (b) Defined as gross profit/ton minus expenses/ton.
 
 
     (Dollars in Millions)
                                            03/31/2001   12/31/2000
 
         Cash and cash equivalents              $24.6        $23.8
         Accounts receivable                    319.5        285.4
         Current value of inventory             530.7        608.9
         Net property, plant and equipment      268.5        274.7
         Goodwill                                94.9         96.5
 
         Accounts payable                       177.0        137.6
         Short-term borrowing                    47.0         97.0
         Long-term debt (including due
          within one year)                      243.1        243.2
         Stockholders' equity                   660.3        661.7
 
 

SOURCE Ryerson Tull, Inc.
    CHICAGO, April 16 /PRNewswire/ -- Ryerson Tull, Inc. (NYSE:   RT) today
 announced net income of $1.3 million, or $0.05 per diluted share, for the
 quarter ended March 31, 2001. As indicated in its release dated April 4, 2001,
 Ryerson Tull credits the profit to the benefits of the corporate
 reorganization and other programs implemented in 2000.
     "During the second half of 2000, we redesigned our business to run at
 lower cost," said Neil Novich, Chairman, President, and CEO of Ryerson Tull.
 "And we remade key business processes-including the way we purchase materials
 and manage customer contracts-improving efficiency and quality.  So while
 business conditions continued to deteriorate during the first quarter, we were
 able to show a profit in the current environment."
     First quarter 2001 sales were $638 million, down 18.8 percent from the
 first quarter of 2000, on a 15.7 percent decrease in tons shipped. Gross
 profit per ton declined to $177 in the first quarter of 2001 from $182 in the
 first quarter of 2000, due to the lower average selling price per ton.  Metal
 prices continued to fall, with average selling price per ton in the first
 quarter of 2001 declining 4 percent year-over-year and 1 percent sequentially.
     Operating profit for the first quarter of 2001 was $9.5 million.  A
 $1.3 million fee associated with the company's accounts receivable financing
 was offset by a $1.3 million gain on the sale of assets.
     "In the first quarter, we realized the full benefits of the corporate
 reorganization and other programs, in line with our goal of $30 million in
 annualized cost savings," said Novich.  "Furthermore, gross margins improved
 to 21.4 percent in the first quarter of 2001-up from 21.1 percent in the year-
 ago period and 19.0 percent in the fourth quarter of 2000-due to our ability
 to take costs out of the supply chain and improve the management of account
 profitability."
     Ryerson Tull's market share for the first quarter of 2001 was an estimated
 10.5 percent, compared with 10.9 percent, in the year-ago period, based on
 data from the Steel Service Center Institute (SSCI).
 
     Recent Developments
     As previously disclosed, on March 29, 2001, Ryerson Tull completed a
 $250 million trade receivables securitization facility that will be used to
 retire its $142 million of 8.5% notes due in July 2001 and for working capital
 needs and general corporate purposes.  "We were able to secure very attractive
 rates on our accounts receivable financing-significantly less than the 8.5%
 notes being retired," said Novich.  In February 2001, Ryerson Tull amended its
 revolving credit facility.
 
     Outlook
     "As yet, we have not seen any signs of recovery in market conditions,"
 concluded Novich. "However, due to our early response to the industry slowdown
 and our success at creating a more efficient, customer-focused organization,
 we are prepared."
 
     Note:  Ryerson Tull will conduct a conference call to discuss first-
 quarter results on Tuesday, April 17, at 9:00 a.m. eastern time. The call will
 be simulcast on the company's website, www.ryersontull.com .
 
     Ryerson Tull, Inc. is North America's leading distributor and processor of
 metals, with annual revenues of $2.9 billion. The company has a network of
 service centers across the United States and in Canada and Mexico.  It also
 has investments in service center operations in Mexico and Asia, and maintains
 metal trading capabilities around the world.
 
                    RYERSON TULL, INC. AND SUBSIDIARY COMPANIES
 
                 Selected Income and Balance Sheet Data - Unaudited
        (Dollars and Shares in Thousands except Per Share and Per Ton Data)
 
                                                                       Fourth
                                                 First Quarter         Quarter
                                               2001         2000        2000
 
     NET SALES                               $638,073     $786,264    $619,682
 
        Cost of materials sold                501,786      620,251     501,674
 
        Gross profit                          136,287      166,013     118,008
 
        Operating expenses                    119,940      130,650     120,073
        Depreciation and amortization           8,154        8,371       6,740
        Special bad-debt reserve                  -            -        16,239
        Plant closure costs                       -          4,541         -
        Pension curtailment gain                  -         (4,428)        -
        Gain on sale of assets                 (1,276)         -           -
 
     OPERATING PROFIT (LOSS)                    9,469       26,879     (25,044)
 
        Other revenue and expense,
         including interest income                105           51         164
        Interest and other expense on debt     (6,749)      (6,181)     (8,183)
 
     INCOME (LOSS) BEFORE INCOME TAXES          2,825       20,749     (33,063)
 
        Provision (benefit) for income
         taxes                                  1,499        9,781     (14,173)
 
     INCOME (LOSS) FROM CONTINUING
      OPERATIONS                                1,326       10,968     (18,890)
 
        Discontinued operations (net of tax):
         Adjustment to the gain on sale of
          the Inland Steel Company                -            -        (4,785)
 
     NET INCOME (LOSS)                         $1,326      $10,968    $(23,675)
 
     INCOME (LOSS) PER SHARE OF COMMON
      STOCK
 
         Basic and Diluted:
            Income (loss) from continuing
             operations                         $0.05        $0.44      $(0.77)
            Inland Steel Company -
             adjustment to gain on sale           -            -         (0.19)
            Net income (loss)                   $0.05        $0.44      $(0.96)
 
     Dividends on preferred stock                 $48          $49         $48
 
     Net income (loss) applicable to
      common stock                             $1,278      $10,919    $(23,723)
 
     Average shares of common stock -
      diluted                                  24,966       24,814      24,817
 
 
                                                                        Fourth
                                                   First Quarter        Quarter
                                                 2001         2000        2000
     Supplemental Data :
 
        Tons shipped  (000)                       771          915         738
 
        Average selling price/ton                $828         $860        $840
 
        Gross profit/ton                         $177         $182        $160
        Expenses/ton  (a)                         166          152         172
        Operating profit/ton (b)                   11           30         (12)
 
     (a) Defined as operating expenses, depreciation and amortization, divided
         by tons shipped.
     (b) Defined as gross profit/ton minus expenses/ton.
 
 
     (Dollars in Millions)
                                            03/31/2001   12/31/2000
 
         Cash and cash equivalents              $24.6        $23.8
         Accounts receivable                    319.5        285.4
         Current value of inventory             530.7        608.9
         Net property, plant and equipment      268.5        274.7
         Goodwill                                94.9         96.5
 
         Accounts payable                       177.0        137.6
         Short-term borrowing                    47.0         97.0
         Long-term debt (including due
          within one year)                      243.1        243.2
         Stockholders' equity                   660.3        661.7
 
 SOURCE  Ryerson Tull, Inc.