Algoma Steel Inc. reports strong net income surge in fiscal Q4

Friday, 18 June 2021 18:37:48 (GMT+3)   |   San Diego
       

Sault Ste. Marie, Ontario-based Algoma Steel Inc. reported results for the fiscal fourth quarter ended March 31, 2021. Unless otherwise specified, all amounts are in Canadian dollars.

For the fourth quarter, Algoma Steel reported a net income of $114 million, up from a loss of $73.5 million in the prior quarter and up from $19 million in the fourth quarter of fiscal 2020.

In a press release, the company said the strong performance for the year is attributable to both revenue and cost factors, as Algoma has controlled costs and solidified its financial and liquidity position while capitalizing on the strong demand for steel. Improving market dynamics, with higher selling prices and increased shipments favorably impacted revenues.

Shipments for the fourth quarter were 622,000 tons culminating in steel revenue of $633 million, up 50 percent from $421 million in the prior quarter and up 28 percent from $493 million in the fourth quarter of fiscal 2020.

Algoma Steel's Chief Executive Officer Michael McQuade remarked on the company's strengthening performance, "I attribute these results to the concerted efforts of our employees. Our continued focus on safety is demonstrated by our outperformance of the lost-time injury rate for our industry and the fact that we have kept our workplace COVID-free. Together we have achieved substantial cost reductions over the year, all while increasing shipments of quality steel products to our customers. These results, together with the merger, position Algoma Steel for growth in pursuit of strategic initiatives in our sustainability transformation."


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