‘Unprecedented’ drop in steel prices hurts bottom line of Hamilton’s Stelco

Stelco Holdings Inc. says it swung to a loss in its fourth-quarter after challenging market conditions including an “unprecedented” drop in prices.

The Hamilton-based steel producer says it lost $24 million, or 27 cents per diluted share, for the quarter ending Dec. 31, 2019, compared with net income of $110 million, or $1.23 per diluted for the final quarter of 2018.

Revenue totalled $435 million, down from $648 million a year earlier.

On an adjusted basis, Stelco says its net loss came in at $13 million, or 15 cents per share, compared with an adjusted profit of $123 million, or $1.38 per share a year earlier.

Analysts on average had expected an adjusted loss of 18 cents per share, according to financial markets data firm Refinitiv.

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