CHICAGO - Ryerson Holding Corporation (NYSE:RYI), a leading distributor and processor of metals with a market capitalization of approximately $609 million, announced on Thursday that it has adopted amended and restated bylaws effective immediately.
The changes, approved by the Board of Directors on Wednesday, were made to eliminate outdated provisions and to align the company's governance with recent developments in Delaware law.
According to InvestingPro data, the company maintains a strong financial health score, with management actively buying back shares, indicating confidence in the company's direction.
The updated bylaws remove references to the equity ownership of the company's former controlling shareholder and make additional minor technical adjustments. Furthermore, they revise and enhance the procedural and informational requirements for shareholder nominations and proposals during shareholder meetings, reflecting the company's "advance notice" provisions.
These amendments are seen as a move to streamline corporate governance practices and ensure compliance with current legal standards. Ryerson Holding emphasized that while some changes are merely technical, others are intended to improve the clarity and functionality of the company's governance framework, particularly concerning shareholder engagement.
The company's strong financial position is evidenced by its healthy current ratio of 2.22, demonstrating solid liquidity with assets well covering short-term obligations. InvestingPro subscribers can access 8 additional key insights about Ryerson's financial health and market position through the platform's comprehensive Pro Research Report.
The full text of the amended and restated bylaws has been filed with the Securities and Exchange Commission as Exhibit 3.1 in the company's latest 8-K report. This corporate governance update comes as Ryerson Holding continues to focus on its strategic growth initiatives and operational efficiency in the metals service center sector, while maintaining a consistent dividend program with a current yield of 3.92%.
In other recent news, Ryerson Holding Corporation has reported Q3 losses, with net sales hitting $1.13 billion and facing a net loss of $6.6 million. This downturn is attributed to reduced average selling prices and lower sales volumes. Despite these setbacks, the company disbursed $42 million in the third quarter.
In an effort to boost future growth and efficiency, Ryerson has strategic investments underway, including enhancements at the Shelbyville facility and the acquisition of Production Metals. A $60 million cost reduction plan is also being implemented, with capital expenditures expected to decrease to $50 million in 2025.
Additionally, Ryerson announced a significant shift in financial oversight by appointing KPMG as its new independent auditor for 2025. This change follows a thorough evaluation by the Audit Committee of the Board of Directors and will take effect following the completion of the audit for the year ended December 31, 2024. The transition to KPMG comes without any prior consultations that would have influenced the company's accounting or financial reporting decisions.
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