International Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/stelco.png)
Stelco swings to a Q4 loss but sees better margins ahead
Written by Ethan Bernard
February 21, 2024
Stelco Holdings Inc.
Fourth quarter ended Dec. 31 | 2023 | 2022 | % Change |
---|---|---|---|
Net sales | $613 | $674 | -9% |
Net earnings (loss) | ($25) | $23 | -209% |
Per diluted share | ($0.45) | $0.39 | -215% |
Twelve months ended Dec. 31 | |||
Net sales | $2,917 | $3,463 | -16% |
Net earnings (loss) | $149 | $997 | -85% |
Per diluted share | $2.70 | $14.64 | -82% |
Canadian steelmaker Stelco swung to a loss in the fourth quarter as revenue declined due to decreased shipping volume and average selling prices.
The Hamilton, Ontario-based company reported a net loss of Canadian $25 million (-US$18.5 million) in Q4’23 vs. net income of C$23 million a year earlier on revenue that fell 9% to C$613 million (US$454.1 million).
“Our fourth-quarter results were down over the previous quarter, but we do expect improved margins in Q1 and into Q2’24, as we begin to realize the higher market pricing that we saw in the latter part of 2023,” Alan Kestenbaum, executive chairman and CEO, said.
He made the comments in a statement released after market close on Wednesday, adding that the company remains “optimistic that market demand will stay strong.”
Stelco reported a 9% year-over-year drop in shipping volume in Q4’23 to 609,000 short tons (st). Meanwhile, the company logged a 2% decrease in average selling price per short ton for steel products to $941 in the same comparison.
Comparing it to Q3’23, CFO Paul Scherzer said, “Our average selling price declined 13% quarter over quarter which, combined with a scheduled maintenance outage that had an impact on our shipments for the fourth quarter, led to a decline in adjusted Ebitda to C$51 million and adjusted net income of C$9 million.”
He continued: “Entering Q1’24, we anticipate a return to shipping volume of approximately 625,000 to 675,000 st and an improvement in adjusted Ebitda due to the realization of more favorable pricing witnessed through much of the fourth quarter.”
A breakdown of Stelco’s shipments is below.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/Stelco-Q4-221-1024x336.png)
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_EB_headshot.png.jpg-150x150.png)
Ethan Bernard
Read more from Ethan BernardLatest in International Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/worldsteel_logo.png)
Global steel production dipped in June
Global steel output eased 2% in June following May’s 14-month high, according to World Steel Association’s (worldsteel) latest release.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/ArcelorMittal.png)
Union rejects proposal to end strike at ArcelorMittal Mexico
The local mining union has rejected a proposal to end the labor strike at ArcelorMittal Mexico’s Lazaro Cardenas mill and Las Truchas mine in Michoacán, Mexico.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/NLMK.png)
NLMK mill targeted in Ukrainian drone attack
Novolipetsk Steel’s (NLMK) mill in Lipetsk, Russia, was the target of a raid by Ukrainian drones on Sunday, according to a Reuters report.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/USS-logo.png)
USS and Nippon clarify position on US trade case participation
U.S. Steel and Nippon Steel explained their position on USS’ participation in US trade cases should their proposed nearly $15-billion merger deal go through. The companies hope to close the deal by the end of the year.