Sharp decrease of profits at Canadian Slater Steel

Sharp decrease of profits at Canadian Slater Steel

Canadian specialty steel producer Slater Steel Inc. announced its financial results for 2002. According to the statement by the company, last year's net profit amounts to only C$487'000 (US$330'000) last year, with a sharp decline of 94.7% down on 2001's C$9.2 million earnings. The Ontario-based company in the fourth quarter recorded a net loss of C$6.9 million compared to the C$1.5 million net profit recorded in the past year's same period. This loss includes a $4.3 million charge on one or two rolling mills at Atlas Specialty Steels. The fourth quarter loss is a result of decreased shipments and production cutbacks that took place in December. The production cutbacks have the intention to align inventory levels with the market conditions, according to company officials. The company CEO Paul Kelly expressed that this decrease of profit in 2002 is seen as a result of sluggish economic environment, weaker demand for stainless steel and high level of imports. Slater Steel is a minimill producer of specialty steel, producing finished goods such as bar, flat stainless steel, carbon and low alloy steel widely for the automotive industry, appliances and other consumer goods.