Lakeside Steel anticipates continued profitability challenges in short-term
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Welland, Ontario-based oil country tubular goods (OCTG) manufacturer Lakeside Steel said Friday that it expects its near-term financial results will be negatively impacted until the company reduces inventory levels and "realizes its vertical integration strategy." Lakeside recorded a net loss of $1,093,059 in fiscal Q1 2012 (ended June 30, 2011), following a net loss of $810,662 in fiscal Q1 2011.
A press release from Lakeside indicates that a shift in customer demand toward thermal treated products also negatively affected Lakeside's earnings, but upon completion of the manufacturing mill and thermal and end-finishing facilities in Alabama, the company expects that it will be in a position to "return to profitability."
Imports also took a toll on Lakeside in fiscal Q1, as "low-cost overseas imports of plain end product led to a significant constraint in thermal treatment and end-finishing capacity in the market."