Steel Mills
Algoma: Q3 Earnings In Line with Guidance Despite Reduced Shipments
Written by David Schollaert
January 10, 2022
Algoma Steel Group Inc. said it expects its third-quarter fiscal 2022 financial results to align with its previous guidance despite lower-than-expected steel shipments for the quarter.
The Sault Ste. Marie, Ontario-based steelmaker shipped roughly 550,000 net tons of steel in the third quarter of fiscal 2022 ended Dec. 30, 2021, below prior guidance of 590,000 to 610,000 net tons.
“We were pleased with the company’s performance during the quarter, with expected financial results in line with our previous fiscal third quarter adjusted EBITDA guidance, albeit on lower than planned shipments,” Algoma CEO Michael McQuade said.
Shipments in the third quarter were lower than expected due to various production challenges, supply chain constraints, COVID-related struggles, and increased holiday shutdowns from its customer base, said McQuade.
The Canadian sheet and plate producer said that the resulting surplus inventory would distributed over the next two fiscal quarters.
“Algoma’s high percentage of contract business offers stability during periods of volatility and this, combined with the strong demand and improving pricing we are seeing for our plate products, has positioned us well to continue delivering strong results to our shareholders,” McQuade added.
Hamilton, Ontario-based Stelco Holdings Inc. – one of Algoma’s competitors in the Canadian flat-rolled steel sector – has also warned that shipments will be significantly below prior guidance.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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