Hamilton based Stelco reports earnings down 74% in Q3 due to lower steel prices, inflation
Published November 16, 2022 at 7:24 am
Stelco Holdings Inc. says its net earnings for the third quarter ended Sept. 30 were down by almost 74 per cent year-over-year to $158 million, or $2.33 per diluted share.
The Hamilton-based steelmaker says challenging market conditions in the third quarter, which are expected to continue, included lower steel prices and inflationary pressure.
The company’s revenue was $217 million for the quarter, down 38 per cent from last year and down 18 per cent from the second quarter.
The company says its revenue decrease was primarily due to a 36 per cent decline in average selling price per net ton, as well as lower shipping volumes and lower non-steel sales, all compared to last year.
However, executive chairman and chief executive Alan Kestenbaum says despite inflation and downward steel pricing trends, the company saw shipping volumes increase over last quarter.
The company reiterated its fourth-quarter guidance that lower prices and shorter lead times will continue to affect results throughout the rest of the year.
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