Stelco turnaround continues as steelmaker posts earnings beat in first report since IPO
by The Canadian Press
The century-old Ontario manufacturer beat analyst earnings expectations with net income of $46 million for Q4 2017
HAMILTON—Stelco Holdings Inc. is reporting adjusted net income of $46 million in the fourth quarter of 2017 in its first earnings report since launching an IPO last November.
The Hamilton-based company had reported a net loss of $47 million in the same period a year earlier.
Fourth quarter revenue was $452 million, a 45 per cent increase year-over-year, driven by increases in shipping volumes and average selling prices.
Thomson Reuters analysts forecasted net income of $31 million and revenue of $450.9 million.
Stelco priced its initial public offering last November at $17 a share to pull in an expected $200 million.
The Hamilton-based steel company said it planned to use the money for capital investments, pension payments, and to increase its offerings in specialized steel products.
Stelco’s history goes back to 1910 but in recent years has been beset by financial problems. It went into creditor protection in 2004 and was sold as a subsidiary to U.S. Steel Co. in 2007, then went back into creditor protection in 2014 before being sold to Bedrock Industries L.P. in late 2016.
At the end of June, Stelco emerged from creditor protection under its original name, having eliminated $3 billion of debt and about $1.4 billion of pension and other retirement obligations.