Steel Mills
Severstal Announces $1 Billion In Dividends
Written by Sandy Williams
July 31, 2014
OAO Severstal posted a net loss of $661 million for second quarter that includes a non-cash loss estimate of $1.066 billion on the disposal of Severstal Dearborn, Severstal Columbus, and PBS Coal and a foreign exchange gain of $199 million. Excluding these items, Severstal would have posted a net profit of $206 million. Second quarter EBITDA was $606 million.
Severstal NA sales of rolled products increased 6 percent q/q to 1.25 million tonnes (1.38 million net tons) for revenue of $1,066 million in second quarter. Revenue increased by 10.6 percent for the first half. The average selling price for the quarter was $827/tonne and $831/tonne ($750/ton and $754/ton) for the first half of 2014.
Severstal’s Board of Directors announced the intention to return approximately $1 billion to shareholders via a special dividend following the closure of the sale of Severstal Columbus and Severstal Dearborn. The company also intends to increase quarterly dividend payments to not less than 50 percent of net profit from the current 25 percent rate. The higher dividend will continue as long as the net debt/12-month trailing EBITDA ratio is below 1.0 times.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Mexico’s TYASA breaks ground on SBQ rolling mill
Mexican steelmaker Talleres y Aceros (TYASA) broke ground this month on the construction of a new special bar quality (SBQ) rolling mill in the state of Veracruz.
Goncalves sees more US trade actions ahead, says Nippon deal for USS has ‘zero chance’
Cleveland-Cliffs’ Lourenco Goncalves thinks trade measures announced by the US government on Tuesday against China were just the opening salvo in a series of trade actions. Case in point: The Biden administration targeted China’s “unfair” trade policies with additional tariffs on an array of Chinese-made goods - including steel, aluminum, and EVs.
Nucor holds weekly HRC price steady after last week’s cut
Nucor chose to hold its consumer spot price (CSP) for hot-rolled (HR) coil steady this week after stunning the market last week with a significant price decline. The steelmaker said in a letter to customers on Monday morning that its $760-per-short-ton (st) CSP base price for HR coil is effective immediately. The price is unchanged from the CSP announced on May 6 but down $65/st from $825/st April 29.
Nucor’s Jellison set to retire, Spicer tapped for EVP role
Nucor said EVP Douglas J. Jellison plans to retire on June 8 after more than 33 years with the company. Randy J. Spicer will be promoted to EVP effective May 12.
Republican Senators demand Biden block USS sale to Nippon
Three vocal Republican senators are demanding that President Joe Biden block the sale of U.S. Steel to Japan’s Nippon Steel.