Stelco reports $45 million in net income for Q1

Thursday, 03 May 2018 00:22:59 (GMT+3)   |   San Diego
       

Stelco Holdings Inc. today announced financial results for the three months ended March 31, 2018. Stelco Holdings is the 100 percent owner of Stelco, the operating company.

Revenue increased 25 percent to $482 million in Q1 2018 from $386 million in Q1 2017, driven by a 23 percent increase in shipping volumes and a 2 percent increase in average selling prices. On a sequential basis, revenue increased 7 percent from $452 million in Q4 2017, driven by a 4 percent increase in shipping volumes and a 3 percent increase in average selling prices

Net income for the quarter increased by $45 million, from a net loss of $17 million in the first quarter of 2017 to net income of $28 million in the first quarter of 2018. The period-over-period increase reflects improved revenue and lower finance cost, offset by higher operating costs due to increased volumes and increased raw material and SG&A costs.

Q1 2018 shipping volume equates to approximately a 2.5 million nt (net tons) annual run rate, up 25 percent from fiscal 2017 shipping volumes of 2 million nt

Alan Kestenbaum, the Company's Executive Chairman and Chief Executive Officer, commented: "Improving industry fundamentals and rising demand for steel should continue to benefit Stelco in the second quarter and beyond as we ship orders that were booked at sequentially higher prices during the first quarter. In addition to the rising tide from stronger industry conditions, we have achieved a number of strategic initiatives that we expect will positively impact our shipping volumes and margins on an ongoing basis, including our investments in rail assets and enhancements to our dock at Lake Erie Works, which are now in place and are expected to improve our shipping volumes and reduce our shipping costs."


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