Alan W. Weber

Alan W. Weber asked about the longer-term implications of increased consolidation in the metals sector, specifically mentioning the Ryerson-Olympic Steel merger and the Worthington-Klöckner announcement, and how this trend might impact the combined Ryerson/Olympic entity.

Answer

Eddie Lehner (CEO, Ryerson) stated that M&A activity was historically lacking in the sector, and more consolidation is a mathematical necessity to balance the industry given consolidation on the mill and customer sides. He believes the Ryerson-Olympic Steel merger was a fantastic opportunity, and the Worthington-Klöckner announcement is positive and healthy for the industry. Rich Manson (SVP of Finance, Olympic Steel) agreed that consolidation is good for the industry. Andrew Greiff (EVP, Olympic Steel) added that the combined company sends a strong financial message to large OEM customers and offers enhanced downstream capabilities, which customers are increasingly seeking.