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Stelco closes book on record year with $513M Q4 profit as steel prices boost revenues

Canadian Press - Wed Feb 23, 5:15PM CST
Rolls of coiled coated steel are shown at Stelco in Hamilton on Friday, June 29, 2018. THE CANADIAN PRESS/Peter Power

HAMILTON — Stelco Holdings Inc. capped its most successful year by swinging to a $513-million profit in the fourth quarter on a near tripling of revenues due to soaring prices.

The Hamilton, Ont.-based steelmaker says it earned $6.64 per diluted share in the three months ended Dec. 31, compared with a net loss of 53 cents per share or $47 million a year earlier.

Adjusted profits were $525 million or $6.79 per share, up from $45 million or 51 cents per share in the fourth quarter of 2020.

Net revenues reached $1.19 billion from $424 million in the prior-year quarter as average selling prices increased 153 per cent and shipping volumes were 28 per cent higher.

Stelco was expected to earn $6.53 per share in adjusted profits on $1.25 billion of revenues, according to financial data firm Refinitiv.

Full-year profits reached a record $1.61 billion on $4.12 billion of revenues, a turn around from a $159-million loss on $1.52 billion of revenues in 2020.

"Over the past four and a half years, we have invested strategically and remained tactically flexible in order to take full advantage of our industry-leading low-cost position and capitalize on favourable market conditions," stated Alan Kestenbaum, executive chairman and chief executive officer.

This report by The Canadian Press was first published Feb. 23, 2022.

Companies in this story: (TSX:STLC)