Steel Mills
Furnace Maintenance Cools 3Q Results at Stelco
Written by Tim Triplett
November 15, 2017
Canada’s Stelco, Inc., reported revenues totaling $1.15 billion (all figures Canadian) for the nine months ended Sept. 30, an increase of 16 percent over the prior-year period. Operating profit totaled $61 million, up from $8 million last year. The average selling price for the year to date was $814 per net ton, up from $654 in 2016, due to the improved market price of steel.
In the third quarter, the Hamilton, Ontario-based flat rolled steelmaker reported revenue of $336 million, a 10 percent decrease from the same period last year primarily from lower shipping volumes due to its planned blast furnace outage. Operating profit for the quarter was zero, down from $44 million in 3Q 2016.
“We are extremely pleased with the financial results for the third quarter and year-to-date, both consistent with management expectations. A key performance driver was the blast furnace outage taken in the third quarter, which increased production levels to 29 heats per day from 21, or by 38 percent. The strong production performance has continued into the fourth quarter, as well,” said Alan Kestenbaum, Stelco Executive Chairman and CEO. “With its legacy issues addressed and a strong balance sheet, Stelco is poised to grow organically—via increased production, product innovation, the repatriation of former customers, and through disciplined acquisitions. If the right opportunities present themselves, we will be poised to act.”
Subsequent to the third quarter, Stelco completed an initial public offering, which closed Nov. 10, netting the company $230 million. “I appreciate the support that investors gave the IPO and share their optimism for this iconic company’s future,” Kestenbaum added.
The financially troubled Stelco was acquired by Bedrock Industries last year and emerged from creditor protection at the end of June. The steelmaker employs nearly 2,200 workers at its Hamilton and Lake Erie facilities in Ontario.
Tim Triplett
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