Stelco Closes on IPO, Reports Q3 Earnings
“A key performance driver was the blast furnace outage taken in the third quarter, which increased production levels to 29 heats per day from 21, or by 38%. The strong production performance has continued into the fourth quarter as well," said Alan Kestenbaum, Stelco executive chairman and chief executive.
"With its legacy issues addressed and a strong balance sheet, Stelco is poised to grow organically via increased production, product innovation, the repatriation of former customers, and through disciplined acquisitions. If the right opportunities present themselves, we will be poised to act.”
The company closed on its initial public offering on Friday, raising CDN230 million.
“I appreciate the support that investors gave the IPO and share their optimism for this iconic company's future. We look forward to creating value to the benefit of our valued customers, employees and shareholders," Kestenbaum said.
For the quarter ending 30 September, Stelco reported CDN336 million in sales, a decline of 10% over the same quarter last year. The company said the decline was largely due to a decrease in shipments, which was mostly tied to the blast furnace outage.
The decline was offset by an increase in average selling prices, which rose 9% to CDN818/net ton.
"We are extremely pleased with the financial results for the third quarter and year to date, both consistent with management expectations,” said Kestenbaum.