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) December 1, 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)

Item 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 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.

Item 9.01 Financial Statements and Exhibits

(a) None

(b) None

(c) None

(d) Exhibit—The Exhibit index included herewith is incorporaterd herein by reference.

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: December 1, 2006		/s/ Terence R. Rogers
	By:	Terence R. Rogers
	Its:	Vice President—Finance and Treasurer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Slide Presentation dated December 2006

EX-99.1

Global Steel CEO Forum 2006

Goldman Sachs

December 6-7, 2006

New York

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

The turnaround in 3 phases

EBITDA*

(50.1)

20.8

27.4

121.1

275.8

203.1

(100)

(50)

0

50

100

150

200

250

300

2001

2002

2003

2004

2005

3Q 2006

YTD

$ in millions

* Earnings before discontinued operations, taxes, interest expense, depreciation and amortization.  (Full

reconciliation is attached.)

Recession / Restructuring

Integris

Acquisition

Future

Opportunities

4

Our strategy is a constant

Three Fundamental Principles

1. Focus on operating efficiency

2.

Capture organic growth

3.

Seek 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 Restructuring: Cut annualized fixed costs by $85mm

Consolidated over 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

Created platform for additional acquisitions. Jan. 2005, IM acquisition synergies produced

$40mm of fixed cost reduction

January 2005: Captured annualized cost savings of more than $40mm and

increased target savings to $50mm of annualized cost reductions

Captured sourcing synergies

Reduced overhead

Consolidated 5 service centers to date

On target to achieve $50mm of total savings ($40mm to date)

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

Consolidate 5 legacy platforms into one SAP

$65 million project

Cost savings alone justify expenditure

Additional benefits: 

•

Seamless link with customers and suppliers

•

More detailed and timely decision-making information

•

Facilitate sharing of inventory and pricing information among service

centers

21 service centers converted to date

8

Lean Six Sigma problem solving and continuous improvement

process to increase operating efficiencies

Target improvements throughout the company/

across all strategic initiatives

Specific financial goals

Quantitative measurement of progress

Lean Six

Sigma

Sell the

Change

Transfer

Knowledge

9

Aggressive

marketing

and brand

creation

•

Promotions

•

Targeted vertical

markets

•

Direct outbound

telesales

Leads to trial

•

Good experience

leads to retention

National marketing program

Results

•Met or exceeded

expectations for

80% of customers

10,000 new accounts

Annualized revenue of $200 mil.

Extensive External and Internal Metrics

Comprehensive research showed:

Ryerson had a great reputation

But awareness was lacking

•

50% of potential customers unaware of Ryerson

Organic growth: Marketing

10

Customer Solutions Team (CST)

National account sales organization

Designed to service large, multi-location customers

Unique in service center industry-

Integrated national footprint

Ryerson has the geographic and product diversity

Attractive to customers

Trend to consolidate suppliers and focus on core competencies

Single point of accountability

Attractive to Ryerson

Opportunity to expand with existing and new customers

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

11

Acquisition and joint venture strategy

Product/supply chain

Product/supply chain

Different

Different

Same

Same

Service center industry is fragmented and consolidating

•

Ample opportunities

“Add strength to

strength”

Highest overall

potential

Cross-selling

opportunities

“Buying a cash

flow”

Very risky

New markets

12

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

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

13

Integris acquisition created…

A leading metals service center company

Source: Company filings and press releases

1

Converted to US$ using exchange rate as of 9/30/2006

Trailing 12-month revenues (through 3Q06)

$5,798

$1,754

$960

$6,214

$2,464

Reliance Steel & Earle M.

Jorgensen

Ryerson

Russel

Metals (1)

Metals USA

Olympic Steel

Stainless

&

Aluminum

Sales

$3,103

14

…Broad geographic footprint

15

…And a 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%

16

Going beyond the U.S.

International joint ventures

Access faster growing markets

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

Leverage supplier relationships

17

JVs: $400 million annual revenue to date

Mexico

India

China

Closed 10/2006

Collado Ryerson Mexico

50/50 fabrication venture

2005 revenues: $63 million

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

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

Fragmented and profitable service center industry

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

18

Stainless and Aluminum

1,000

1,500

2,000

2,500

3,000

3,500

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

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

Recent jumps in metal prices

19

FIFO Methodology

1,000

1,200

-

200

400

600

800

1,000

1,200

1,400

LIFO Methodology

1,000

1,200

-

200

400

600

800

1,000

1,200

1,400

$300

$500

LIFO Reserve

Hypothetical LIFO vs. FIFO-

Where is the value during a rising price environment?

200

200

400

200

ANSWER: SAME FUNDAMENTALLY

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

(All figures on a Per Ton basis)

(All figures on a Per Ton basis)

20

LIFO reserve increased significantly

Material Cost Per Ton to LIFO Reserve

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

100

150

200

250

300

350

400

450

500

Material Cost Per Ton

LIFO Reserve

Note: Integris results included as of 1Q 2005

$300MM

21

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 $101.3 million in 3Q06 

•

Under FIFO, the majority of that amount would have been operating

earnings

LIFO reserve at September 30 of $453 million, or $16 per share

Since

2005,

three

separate

pools

–

stainless,

aluminum,

and

carbon

22

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

1600

1700

100

125

150

175

200

225

250

275

300

325

350

Material Cost Per Ton

Gross Profit Per Ton

Note: Integris results included as of 1Q 2005

23

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

24

Debt management

*Current value of inventory as of 1/31/05

800

850

900

950

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1/4/05*

3/31/05

6/30/05

9/30/05

12/31/05

3/31/06

6/30/06

9/30/06

40%

45%

50%

55%

60%

65%

70%

75%

80%

Debt

Current Value of Inv.

Debt-to-Capital

25

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

26

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

27

A North America 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

28

Appendix

29

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

30

EBITDA Reconciliation

Net income

($61.1)

($95.7)

$(13.6)

$56.0

$98.1

$76.2

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

47.3

Interest on debt

19.3

14.6

18.8

24.0

76.0

49.6

Depreciation and amortization

31.8

25.0

23.9

21.1

39.2

30.0

EBITDA

($50.1)

$20.8

$27.4

$121.1

$275.8

$203.1

2001

2002

2003

2004

2005

3Q 2006

YTD