HAMILTON — Stelco Holdings Inc. says it swung to a loss in its fourth quarter after challenging market conditions including an “unprecedented” drop in prices.
The Hamilton-based steel producer says it lost $24 million or 27 cents per diluted share for the quarter ended Dec. 31, compared with net income of $110 million or $1.23 per diluted for final quarter of 2018.
Revenue totalled $435 million, down from $648 million a year earlier.
On an adjusted basis, Stelco says its net loss came in at $13 million or 15 cents per share, compared with an adjusted profit of $123 million or $1.38 per share a year earlier. Analysts on average had expected an adjusted loss of 18 cents per share, according to financial markets data firm Refinitiv.
The loss came as the company saw a 28 per cent decrease in the average steel selling price and six per cent lower steel shipping volumes.
CEO David Cheney says the company has made changes to make the business more sustainable, including a shift in its product mix towards higher value-added products such as for the auto industry, and plans to further diversify its product mix going forward.
This report by The Canadian Press was first published Feb. 19, 2020.
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