Stelco says higher steel demand fuels Q1 volume and price growth
By CP STAFFGeneral Manufacturing Metals manufacturing metals Steel stelco
Revenue up 7% , but short of analyst expectations of $510 million.
HAMILTON — Stelco Holdings Inc. says stronger demand for products from its Ontario steel mills contributed to its higher first-quarter revenue.
The Hamilton-based company says revenue rose 25% in the three months ended March 31 to $482 million from $386 million in the same period last year, as volumes jumped by 23% and average selling prices by two per cent.
Revenue was also up 7% from the previous quarter, but fell short of analyst expectations of $510 million, according to Thomson Reuters.
Adjusted net income was $49 million versus $8 million in the year-earlier period, beating analyst estimates of $43 million.
CEO Alan Kestenbaum says the results reflect improved efficiency and he predicts more of the same in the second quarter as better industry fundamentals and rising demand for steel continues.
The company, whose history goes back to 1910, emerged from its latest round of creditor protection last June having eliminated $3 billion of debt and about $1.4 billion of pension and other retirement obligations. It launched an initial public offering last fall.