"The board is wholly committed to building longer-term shareholder value," Anderson said, adding that it views the long-term direction of the company "extremely positively."
He suggested that Dolans experience turning around struggling units for General Electric Co. and United Airlines, combined with his energy and customer skills, were strong reasons for Castle to continue as an independent company.
During the conference call, Dolan promised a strategic review of Castles operations over the next 90 days to align them more closely and develop process and other improvements.
A Platinum Equity executive referred questions to Ryerson, whose executives couldnt be reached for comment Thursday.
A steel distributor who closely observes the industry said the merger wouldnt have meant much in the flat-rolled market but would have added specialty products customers and expertise to Ryersons stable.
As a full-line supplier, "it would have made them incredibly competitive with many other Chicago service centers and those who want to come into the Chicago market," he said. On the other hand, "large service centers getting bigger isnt necessarily better. When youre that big, there are fewer synergies to get rid of and little that you can do to improve a poorer-performing partner." Plus, "I dont see them as having huge compatibility."
He noted that if Castle fails to boost profits down the line, even under new energetic leadership, "Ryerson could get them very cheap."