8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported) September 12, 2006

RYERSON INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

1-9117	36-3425828
(Commission File Number)	(I.R.S. Employer Identification No.)

2621 West 15th Place, Chicago, Illinois 60608

(Address Of Principal Executive Offices, including Zip Code)

(773) 762-2121

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, If Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

7.0l Regulation FD Disclosure

The Registrant is furnishing investors presentation slides containing the information included in Exhibit 99.1 to this report, that have been prepared for investors. Certain slides in Exhibit 99.1 contain non-GAAP financial information. The reconciliation of such non-GAAP financial information to GAAP is included in Exhibit 99.1.

The information contained in this report, including Exhibit 99.1, is furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, unless this report is specifically incorporated by reference in a document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Cautionary Statements regarding Presentation

This filing contains historical information as well as estimates and other forward-looking statements (that is, statements that are not historical facts) that are based on assumptions and on anticipation of future events that are subject to certain risks and uncertainties that could cause actual results to vary materially from the expected results described in the forward-looking statements. The principal risk factors that may cause actual results to differ materially from those expressed in the forward statements are described in various documents Registrant files with the Securities and Exchange Commission, including its Registration Statement on Form S-3/A(No. 333-121638), as updated by its most recent Annual Report on Form 10-K for the year ended December 31, Quarterly Report on Form 10-Q for the most recent quarter and Current Reports on Form 8-K.

The Registrant expressly disclaims any obligation to update the presentation contained in Exhibit 99.1 of this Report and cautions that the information is only accurate on the date of filing. The inclusion of any data or statements in this presentation does not signify that the information is considered material.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RYERSON INC.
Dated: September 12, 2006	/s/ Lily L. May
	By:	Lily L. May
	Its:	Vice President, Controller and
		Chief Accounting Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Slide Presentation dated September 2006

EX-99.1

Investor Presentation 2006

Exhibit 99.1

1

Safe harbor provision

During this presentation, we will make forward-looking

statements subject to known and unknown risks and

uncertainties that could cause actual results to differ

materially from those expressed or implied by such

statements. Such risks and uncertainties include, but are not

limited to, the volatility in metals demand and prices, the

cyclicality of the various industries the company serves, and

other risks described in reports filed with the SEC. We

assume no obligation to update the information provided in

this presentation.

*

*

2

January 1, 2006

New name:

Ryerson Inc.

New ticker symbol:

“RYI”

New company:

Leading market position

Enhanced profit potential

Strong cash-generating capability

Opportunities for organic

and external growth

*

*

3

EBITDA*

The turnaround…

(50.1)

20.8

27.4

121.1

275.8

140.3

(100)

(50)

0

50

100

150

200

250

300

2001

2002

2003

2004

2005

1H06

$ in millions

* Earnings before discontinued operations, taxes, interest expense, depreciation and

amortization.  (Full reconciliation is attached.)

*

*

4

…

Reflects our strategy

Three Fundamental Principles

1. Focus on operating efficiency

2.

Capture organic growth

3.

Do acquisitions and joint ventures to: 

Structurally enhance competitive

position

Provide additional earnings growth

Part way through a multi-year process

A lot completed

More to be done

*

*

5

Operating efficiency: Significant accomplishments to date

2000-2004: Cut annualized fixed costs by $85 million

Consolidated 20+ service centers

Centralized non-customer-facing activities (purchasing, IT, human

resources, credit, accounting)

Decentralized decision making and accountability for pricing,

customer service, and quality.

•

Increased speed and responsiveness

•

Closer to the customer

Since the Integris Metals acquisition (01/2005): Captured

annualized cost savings of more than $30 million

Captured sourcing synergies

Reduced overhead

Consolidated 5 service centers to date

On target to achieve $50 million of savings

*

6

Reach cost-saving goal of $50 million from Integris integration by end of 2007

Consolidate additional 15 facilities; reduce headcount; complete

consolidation of

overhead

Reach inventory turnover goal of 5x by end of 2007

Can significantly enhance return on assets and cash flow

Do at a pace to retain customers and improve service

More to come

*

*

7

Upgrade information technology

Integrating IT platform using software from SAP

$65 million expenditure for company-wide conversion to

consolidate five platforms into one

Extensive benefits: 

•

Cost savings alone justify expenditure

•

Seamless link with customers and suppliers

•

More detailed and timely decision-making information

•

Facilitate sharing of inventory and pricing information among

service centers

18 service centers converted to date

*

*

8

Lean Six Sigma problem solving and continuous

improvement

Clear opportunities for improvement and plan to get

there

Targets improvements throughout the                

company/across all strategic initiatives

Specific financial goals

Quantitative measurement                                       

of progress

Lean Six

Sigma

Sell the

Change

Transfer

Knowledge

*

*

9

Organic growth: Marketing

Comprehensive research showed:

Ryerson had a great reputation

But awareness was lacking

•

50% of potential customers unaware of Ryerson

Customers want the same things everywhere

Big 5

®

.

Available inventory, on-time delivery, competitive

prices, quality product, rapid response

*

*

10

Aggressive

marketing

and brand

creation

•

Advertising

•

Targeted

corporate

campaigns

•

Local campaigns

•

Coordinated

sales follow-up

•

Direct sales reps

Leads to trial

•

Good experience

leads to

retention

Measure internally

and externally

Met or exceeded

expectations for

80% of customers

Continuous effort

to improve

National marketing program

Results

Results

10,000 new accounts

10,000 new accounts

Annualized revenue of $200 mil.

Annualized revenue of $200 mil.

*

*

11

Organic growth: Customer Solutions Team (CST)

Unique in the service center industry

Resources: geographic scope and product breadth

Organizational structure: single point of contact and

accountability

Large business with growth potential

About 20% of Ryerson’s business ($1 billion)

Significant ability to expand with existing customers and add new

accounts

Trends are favorable as customers consolidate purchasing and

focus on core competencies

*

*

12

Acquisition and joint venture strategy

Product/supply chain

Product/supply chain

Different

Different

Same

Same

Service center industry is fragmented and consolidating

Cross-selling

opportunities

“Add strength

to strength”

Highest overall

potential

“Buying a cash

flow”

Very risky

New markets

*

*

13

Ryerson acquisition record

Completed 8 acquisitions since 1997

Will not overpay

Priority on keeping customers and key employees

Capture integration value

Acquired Integris Metals (2004 sales of $2.0 billion) on January

4,

2005, for $644 million

Creates company with unparalleled product offerings, value-added

capabilities, customer service, and geographic reach

Immediately accretive

Expect annualized cost savings of at least $50 million by the end of

2007

Expands business in faster growth, more profitable stainless and

aluminum

Continue to pursue other domestic acquisitions

14

$5,632

$1,673

$908

$5,677

$2,502

Ryerson

Reliance Steel & Earle M.

Jorgensen

Russel Metals (1)

Metals USA

Olympic Steel

Leading metals service center company

Source: Company filings and press releases

1

Converted to US$ using exchange rate as of 6/30/2006

$ in millions

Stainless

&

Aluminum

Sales

$2,976

Trailing 12-month revenues (through 2Q06)

*

*

15

Broad geographic footprint

*

*

16

Rich product mix and diverse customer base

2005 revenues by product

Other

5%

Carbon flat

rolled

26%

Stainless and

aluminum

50%

Bars, tubing,

structurals

10%

Fabrication &

carbon  plate

9%

2005 sales by end market

Machinery

31%

Fabricated metals

27%

Electrical

machinery

13%

Transportation

10%

Construction,

wholesalers,

mills

12%

Other

7%

*

*

17

International joint ventures

Access faster growing markets

Service U.S. customers who have a presence in these markets

Leverage supplier relationships

*

*

18

JVs

Mexico

India

China

definitive agreement—

9/06

Collado Ryerson Mexico

50/50 fabrication venture

2005 revenues: $63 million

Commercial relationship with Grupo Collado carbon flat

roll processing operation in Monterrey

Tata Ryerson India

50/50 venture

Fiscal 2006 (March ‘06) revenues: $160 million (1 million+

tons processed annually-

including tolling)

Metals distribution in its infancy

Recently expanded product line to include stainless

VSC Ryerson China Limited

40% stake with option to take majority ownership in 3 years

Fiscal 2006 (March ‘06) revenues: $140 million

Plans to expand number of service centers and capabilities

Fragmented and profitable service center industry

Chinese metals market 4x size of U.S. market and growing

faster

19

Not capital intensive

Capex roughly in line with depreciation

Earnings are cyclical; cash flow is countercyclical

Inventory and debt reductions during downturns

Cash flow

Operating cash flow of $320 million in 2005

Absorption of cash in 2006 to finance working capital growth

Future opportunities

Generate cash from real estate sales with facility consolidation

Will close about 20 facilities

Amounts vary, but tend to realize proceeds of $2 to $3 million

per location

Plan to improve working capital management and inventory turns

Cash Flow characteristics

*

*

20

Debt paydown

800

850

900

950

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

1/4/05

3/31/05

6/30/05

9/30/05

12/31/05

3/31/06

6/30/2006

55%

57%

59%

61%

63%

65%

67%

69%

71%

73%

75%

Debt

Debt-to-Capital

*

*

21

Stainless and Aluminum

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

0.7

0.9

1.1

1.3

1.5

1.7

1.9

Stainless

Aluminum

Source: Purchasing Magazine

*Spot prices include raw materials' surcharges starting in 1st Quarter 2001

Hot Rolled, Cold Rolled and Plate Prices

150

250

350

450

550

650

750

Hot Rolled

Cold Rolled

Carbon Plate

Source: Purchasing Magazine

*Spot prices include raw materials' surcharges starting in 1st Quarter 2001

Metal prices reflect strong fundamentals

*

22

Hypothetical LIFO vs. FIFO-

Where is the value during a rising price environment?

LIFO Methodology

1,000

1,200

-

200

400

600

800

1,000

1,200

1,400

$300

$500

LIFO Reserve

FIFO Methodology

1,000

1,200

-

200

400

600

800

1,000

1,200

1,400

200

200

400

200

Answer: Same

LIFO-

Lower income, higher reserve

FIFO-

Higher income, no reserve

Period 1

Period 2

Period 1

Period 2

Material

Cost

Material

Cost

Material

Cost

Material

Cost

800

1,000

800

800

+$0

+$200

Average Selling Price

Average Selling Price

Average Selling Price

Average Selling Price

Gross Profit

Gross Profit

*

23

LIFO inventory accounting: U.S. Inventory

Ryerson implemented LIFO in 1949

Reduces income tax liability

Matches current selling prices with the current replacement

cost

•

No holding gains or losses on the income statement.

In periods of rising prices:

Gross profit and earnings will be lower using LIFO than FIFO

Lowers earnings and reduces income taxes

LIFO reserve can increase significantly

•

Increased $59 million in 2Q06 

•

Under FIFO, the majority of that amount would have been

operating earnings

LIFO reserve at June 30 of $351 million, or $12 per share

Since

2005,

three

separate

pools

–

stainless,

aluminum,

and

carbon

*

*

24

Gross profit per ton increases with material cost per ton

Material Cost Per Ton to Gross Profit Per Ton

700

800

900

1000

1100

1200

1300

1400

1500

100

120

140

160

180

200

220

240

260

280

300

Material Cost Per Ton

Gross Profit Per Ton

Note: Integris results included as of 1Q 2005

*

*

25

But LIFO reserve increases significantly

Material Cost Per Ton to LIFO Reserve

700

800

900

1000

1100

1200

1300

1400

1500

100

150

200

250

300

350

400

Material Cost Per Ton

LIFO Reserve

Note: Integris results included as of 1Q 2005

*

*

26

Short-term goal:

Reduce debt/capital to pre-acquisition levels of about 55%

Other considerations:

Growth-oriented capital spending

Selective acquisitions and joint ventures

Improve pension funding

Future uses of cash: 2006 and beyond

*

*

27

Incentive compensation aligned with shareholders

Short-

and long-term incentive plans:

Annual incentive tied to OROOA (operating return on

operating assets)

Corporate staff: Tied to corporate performance

Service center staff: Tied to individual service center

Long-term incentive

Paid in performance shares

Tied to 4-year return on net assets

Designed to pay for performance and create long-term value

Incentive pay represents nearly one-half of executives’

total

target compensation

Stock ownership guidelines

*

*

28

North America’s leading metals service center

Extensive reorganization drove earnings turnaround

Long-term strategic commitment to continuously improve

operations and competitive position

Programs in place to capture organic growth

Significant upside from recent acquisitions

Opportunities to sell excess assets and increase inventory turnover

Strong management team with proven ability to manage through

industry changes

Investment highlights and conclusion

*

*

29

Appendix

*

*

30

Business model

Profit drivers and impact

Profit drivers 

Impacted by

Volume 

(tonnage)

Manufacturing economy

2 types of customers

50%-60% OEMs—agreements

40%-50% transactional—spot pricing

Gross margins 

(gross profit/ton)

Market conditions

Buy and sell negotiations

Selling prices

Material costs

Operating expenses

(operating expense/ton)

Volume

60% fixed costs/40% variable

Labor productivity

Logistics and transportation

Space utilization

Corporate overhead, incl. IT and legacy costs

Assets 

(asset turns)

Working capital

Inventory is the largest

Service network

*

*

31

EBITDA Reconciliation

Net income

($61.1)

($95.7)

$(13.6)

$56.0

$98.1

$54.6

Cumulative effect of change

in accounting principle

----

82.2

----

----

----

----

Discountinued operations

(gain)/loss

----

1.7

----

(7.0)

----

----

Income tax/(benefit)

(40.1)

(7.0)

(1.7)

27.0

62.5

35.2

Interest on debt

19.3

14.6

18.8

24.0

76.0

30.8

Depreciation and

amortization

31.8

25.0

23.9

21.1

39.2

19.7

EBITDA

($50.1)

$20.8

$27.4

$121.1

$275.8

$140.3

2001

2001

2002

2002

2003

2003

2004

2004

2005

2005

1H06

1H06

*

*