Stelco reports second quarter earnings

Stelco reports second quarter earnings

Legally insolvent Canadian steelmaker Stelco Inc. announced its second quarter earnings decreased five percent due to continued volatility in steel prices. Total sales were $888 million Canadian (CA$) for the second quarter 2005, an increase over the CA$881 million seen for the same period in 2004. Year-to-date net sales were reported as CA$1856 million, an 11 percent increase from same period in 2004. Net earnings for the second quarter was reported as CA$40 million, or CA$0.39 per common share, compared to CA$42 million, or CA$0.41 per common share, for the second quarter 2004. Year-to-date 2005 net income was CA$89 million while year-to-date 2004 net income was CA$5 million. Courtney Pratt, Stelco president and CEO, said, "Our results reflect the softening in North American demand and pricing that began in the third quarter of last year and that has continued well into 2005.” Commenting on Stelco’s outlook, Mr. Pratt said, "We've said that Stelco could not base its future upon steel prices remaining at historically high levels. We've believed from the outset of our restructuring process that the only way to ensure a positive long-term future for the Company is to make it competitive through all stages of the market cycle.” Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.