Stelco makes no net profit in third quarter as revenues drop 23%
The steel maker posted an adjusted net loss of $11 million
HAMILTON – Stelco Holdings Inc. says it made no net profit in the third quarter as revenues dropped 23% on lower selling prices for steel.
The Hamilton, Ont.-based company’s net profit for the period ended Sept. 30 were down from $125 million or $1.41 per diluted share.
Stelco posted an adjusted net loss of $11 million or 12 cents per share, compared with an adjusted net profit of $174 million or $1.96 per share in the prior year.
Revenues were $475 million, down from $619 million in the third quarter of 2018, due to a 28% decrease in average selling price for steel and a $31 million decrease in non-steel sales, partly offset by a 12% increase in steel shipping volumes.
The average selling price dropped $704 per ton, from $980 per ton in the prior year while shipping volumes grew to 654,000 tons, from 586,000 tons in the 2018 quarter.
Stelco was not expected to earn any adjusted profits on $452.3 million in revenues, according to financial markets data firm Refinitiv.