In a recent shift of financial oversight, Ryerson Holding Corp (NYSE:RYI), a metals service center company with $4.7 billion in trailing twelve-month revenue and a market capitalization of $760 million, has announced a change in its independent auditor. According to InvestingPro data, the company maintains a GOOD financial health score, suggesting strong operational fundamentals.
The company disclosed in a filing with the Securities and Exchange Commission (SEC) that, following a thorough evaluation, it has appointed KPMG LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2025.
The decision, made by the Audit Committee of the Board of Directors with the Board's approval, was announced Monday. Ryerson Holding stated that the change would take effect following the completion of the audit for the year ended December 31, 2024, and the filing of the 2024 Form 10-K.
Ernst & Young LLP (EY), the company's previous auditor, did not express any adverse opinion on Ryerson's financial statements for the fiscal years 2022 and 2023. There were no disagreements or "reportable events" between Ryerson and EY during those periods or the interim period through December 3, 2024, that would have impacted their reports.
The transition to KPMG comes without any prior consultations during the last two fiscal years or the interim period that would have influenced the company's accounting or financial reporting decisions.
Ryerson has provided EY with the disclosures from the SEC filing and has included a letter from EY to the SEC, dated today, as part of the filing documentation, attesting to their agreement with the statements made by Ryerson in the report.
This change in certifying accountant is a significant move for the Chicago-based company, which operates within the wholesale metals service sector. Ryerson has not indicated any specific reasons for the change beyond the outcome of its evaluation process. The information is based on the company's latest 8-K filing with the SEC. For investors tracking this development, InvestingPro subscribers can access additional insights, including 12 more ProTips and a comprehensive Pro Research Report, which provides deep-dive analysis of Ryerson's financial health, valuation metrics, and growth prospects.
In other recent news, Ryerson Holding Corporation has reported Q3 losses amid declining sales.
The company's net sales hit $1.13 billion, meeting the lower end of their guidance, and faced a net loss of $6.6 million, a notable downturn from the previous quarter's net income of $9.9 million. This decline is attributed to reduced average selling prices and lower sales volumes. However, despite these setbacks, Ryerson remains committed to its shareholders, having disbursed $42 million in the third quarter.
The company's management remains optimistic about future growth and efficiency gains from strategic investments and cost reduction initiatives. Ryerson's strategic investments include enhancements at the Shelbyville facility and the acquisition of Production Metals to expand aerospace and defense offerings. The company is also implementing a $60 million cost reduction plan and expects capital expenditures to decrease to $50 million in 2025.
Analysts from Lehner have discussed the company's ongoing initiatives, including the new ERP system's optimization and the current U.S. steel supply and demand dynamics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.