Hamilton, Ontario-based Stelco Holdings Inc. today announced financial results of the company and that of Stelco Inc. for the three months and full year ended December 31, 2018. Stelco Holdings is the 100 percent owner of Stelco, the operating company.
Net income for the fourth quarter was $108 million, up from $16 million in the fourth quarter of 2017, but down from $123 million in Q3 2018.
Q4 2018 revenue totaled $648 million, a 43 percent increase year-on-year and a 5 percent increase from Q3 2018. The company said the year-over-year increase in revenue was due primarily to a 14 percent improvement in steel shipping volumes, a 28 percent improvement in average steel selling price, as well as an increase in non-steel sales. Shipping volumes totaled 673,000 nt in Q4 2018, which is also up 15 percent from the previous quarter. The average selling price of the company’s steel products increased to $917/nt in Q4 2018, compared to $718/nt in Q4 2017, but dropped from $980/nt in Q3 2018.
As for the full-year results, net income totaled $247 million in 2018. compared to net income of $3.6 billion in 2017. Revenue for 2018 increased 54 percent year-on-year to $2.46 billion, which the company attributed to a 31 percent increase in steel shipping volumes and a 15 percent increase in average steel selling price, as well as an increase in non-steel sales. Shipping volumes increased from 2.0 million nt in 2017 to 2.6 million nt in 2018. Average selling price increased from $772/nt in 2017 to $889/ nt in 2018.
Commenting on the financial results, Alan Kestenbaum, the company's Executive Chairman, said, "We are continuing with efforts to reduce our tariff exposure into 2019 and fully support the Canadian government's efforts to eliminate the 232 tariffs against Canadian steel. We welcome and appreciate the Canadian government's implementation of various measures including provisional safeguard measures in Q4 2018, that have helped to prevent a surge of offshore imports into the Canadian market."