Market Segment
August 11, 2023
Algoma Swings to Profit, EAF Project on Track
Written by Becca Moczygemba
Canada’s Algoma Steel Inc. reported better than expected results for its fiscal 2024 first quarter.
“Thanks to the dedicated efforts of our employees, we delivered results that were modestly ahead of our previously disclosed outlook,” Michael Garcia, Algoma’s CEO, said in a news release on Aug. 10.
The Sault Ste. Marie, Ontario-based steelmaker reported net income of Canadian $130.9 million (US$97.4 million) in its fiscal Q1’24 ended June 30. That is an 11.4% decrease compared to C$301.4 (US$ 224.3 million) in the year-ago quarter, but a swing from the loss of C$20.4 million in the prior quarter.
Though Q1’24 shipping volumes were up 5.9% year-over-year (YoY) to 569,433 tons, average realized steel prices were down 19% to $1,323 per ton.
| Quarter ended June 30 | 2023 | 2023 | % Change |
|---|---|---|---|
| Net sales | $827.2 | $934.1 | -11.4% |
| Net earnings (loss) | $130.9 | $301.4 | -56.6% |
| Per diluted share | $0.85 | $1.49 | -43% |
Algoma said it continues to make progress on the construction of its two new electric-arc furnaces (EAFs).
The project that was initially announced in November 2021. Currently, the timing and budget are on par with the outlook provided in its fiscal Q4’23 earnings release. Commissioning of the first EAF is expected at the end of calendar year 2024, Garcia said.
