Algoma Steel Shipments Posted Dip in Fiscal Second Quarter

SEATTLE (Scrap Monster): Algoma Steel Group Inc. announced results for its fiscal second quarter ended September 30, 2022. The quarterly results were largely in line with previously announced expectations.

The company press release noted that the consolidated revenue recorded notable dip from CAD$1.01 billion in the prior year to CAD$599.2 million. The consolidated income from operations too were down year-on-year from $402.1 million to $5.6 million. The net income of $87.2 million, or $0.36 per diluted share compares with $288.2 million, or $4.02 per diluted share in the prior-year quarter.

The adjusted EBITDA recorded significant decline from $430.6 million to $82.7 million. The adjusted EBITDA margin too dropped from 42.6% in the prior-year quarter to 13.8% in the quarter ended September 30, 2022.

The shipments totalled 435,202 tons, compared with 587,340 tons in the prior-year quarter, representing a dip of 25.9%.

Commenting on the results, Michael Garcia, Chief Executive Officer, Algoma Steel noted that the fiscal second quarter posed a number of operational challenges, which adversely impacted the results. The company is focused on returning its facilities to full operating capacity. The previously announced electric arc furnace project remains on time and on budget. Also, it is in the final stages of commissioning of the initial phase of the plate mill modernization project, Garcia added.