The Sault Ste. Marie steelmaker posted a quarterly loss of $69.8 million, but Algoma CEO Michael Garcia maintains this is only a slight bump in the road as North American steel markets, as well as their own in-house operating efficiencies, should improve in the coming months.
Algoma shipped 458,341 tons of steel during the quarter, sequentially better than 435,000 tons that went out the door to customers in the second quarter. Yet that's below than what was anticipated. Algoma’s third quarter for 2023 ended on Dec. 31. The company’s 2023 fiscal year runs from April 1 to March 31. The fourth quarter results will come out sometime in the spring.
Last summer and fall, Algoma encountered multiple operational and production issues with a coke oven conveyor belt fire, the delays with the plate mill upgrades and a COVID outbreak that left them shorthanded at its major rolling mill, the Direct Strip Production Complex. Cash-wise, Algoma said it’s in a good position with $245 million in the bank and $239 million available on credit.
The furnaces come online in mid-2024 with raw steel production capacity of 3.7 million tons. Approximately $220 million has been spent on the EAF project as of the end of December. The company reports work as been completed on the foundation and building erection has started.
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