Steel Mills
Essar Steel Algoma Returns to Profitability in Q3
Written by Sandy Williams
February 17, 2015
Essar Steel Algoma announced a return to profitability with a net income of CDN$26.8 million for the third quarter ending December 31, 2014, after reporting a net loss of CDN 38.6 million for the same period of 2013.
Steel shipments for the quarter increased 4.7 percent year over year to 618,538 tons. Average realized sales returns were up 15.8 percent. Higher shipment volumes along with higher selling prices and lower costs strengthened results for the quarter.
Recapitalization and refinancing during the quarter resulted in a deleveraging of the balance sheet by more than US$200 million and an approximate US$47 million reduction in annual cash interest expense.
“The recapitalization was a significant and important milestone this quarter,” said CEO Kalayan Ghosh. “While we are seeing some near-term softening in market fundamentals we are confident our balanced product mix and low cost position provide a sound foundation for strategic reinvestment in optimization and growth in the months and years ahead. In the interim we remain focused on sustaining a safe and reliable operation during the winter season.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor reports IT systems breach
Nucor said it temporarily and proactively halted some production operations at various locations.
Cliffs talks DOE funding, blast furnace relining schedule
The future of two projects supported in part by funding through the Department of Energy remains uncertain.
Cleveland-Cliffs open to asset sales
Meanwhile, its Canadian operations have been hurt by the broader tariffs proposed by the United States.
As Q1 loss balloons, Cliffs pledges to cut costs, streamline operations
Cleveland-Cliffs Inc. gushed red ink in the first quarter, and pledged to stem the bleeding by idling inefficient, “loss-making operations” and increasing focus on its core automotive business.
Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.