Stelco reports record first-quarter results
Legally insolvent Canadian steelmaker Stelco today (May 10) reported record first-quarter earnings of CA$49 million (US$39.6 million) for the quarter ended March 31, 2005. Stelcos 2005 Q1 earnings mark a dramatic turnaround from a net loss of CA$37 million in the corresponding quarter of 2004 and an improvement over net earnings of CA$1 million for the fourth quarter of 2004. Net sales revenue for the past quarter was CA$968 million compared to CA$769 million a year ago. Factors contributing to Stelcos strong Q1 sales revenue include renewal of customer contracts at substantially higher prices, increased spot market prices due to improved market demand, and selling price surcharges implemented to cover higher raw material and energy costs. Production in the first quarter of 2005 was 1256000 semi-finished tons compared to 1366000 semi-finished tons a year prior. Shipments during the first quarter of 2005 totaled 1200000 net tons compared to 1266000 net tons in the first quarter of 2004. CA$1 = US$0.808