Shares of Ryerson Holding Corp (RYI) plummeted 7.12% in after-hours trading on Tuesday following the release of disappointing third-quarter results and the announcement of a merger agreement with Olympic Steel.
Ryerson reported a quarterly adjusted loss of $0.46 per share, significantly missing analysts' expectations of $0.01 per share. The company's net loss widened to $14.8 million, despite revenue rising 3.1% to $1.16 billion. The weak performance was attributed to challenging market conditions, including weak demand and tariff pricing pressures.
Adding to investor concerns, Ryerson announced a merger agreement with Olympic Steel in an all-stock deal. Under the terms, Olympic Steel shareholders will receive 1.7105 Ryerson shares for each Olympic share, giving them approximately 37% ownership of the combined company. While the merger is expected to generate $120 million in annual synergies, the market's immediate reaction suggests skepticism about the deal's impact on Ryerson's near-term prospects.
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