Stelco Q2 Shipments Appear Bright, but the Company Sees Clouds on the Horizon
07/25/2022 - Stelco expects its second-quarter shipments to increase more than 10% over the prior quarter, pushing up profits, but the company anticipates headwinds in the form of declining steel prices in the remaining half of the fiscal year.
Releasing preliminary second-quarter results on Monday, the Canadian steelmaker said it expects its adjusted earnings before interest, taxes, depreciation and amortization to rise roughly 16% over the prior quarter.
The company said sharply rising steel prices in March and April will contribute to earnings. However, prices have reversed course.
“Adjusted EBITDA in Q3 is expected to be materially below the Q2 level, and further weakening is expected in our Q4 results assuming the lower prices and shorter lead times being experienced currently fully impact results and prevail through the remainder of 2022,” the company said.
