Algoma Steel Group Inc. says it earned $130.9 million in its first quarter, down from $301.4 million a year earlier.
The firm says revenue for the quarter ended June 30 was $827.2 million, down from $934.1 million last year.
Earnings per diluted share were 85 cents, down from $1.49 a year ago.
The company performed slightly better than forecast.
Michael Garcia, the Company’s Chief Executive Officer, commented, “Thanks to the dedicated efforts of our employees, we delivered results that were modestly ahead of our previously disclosed outlook. We also made substantial progress on our transformative EAF project, deploying the next $74 million in the quarter to bring the cumulative total invested at June 30, 2023, to $341 million, or roughly 40% of the total expected cost.
“We expect to fund the remainder of the project with a combination of cash on hand, availability under our federal Strategic Innovation Fund (SIF) loan, drawdown of excess working capital, and expected cash flows from operations. We are uniquely positioned to simultaneously deliver strong financial results from our existing portfolio while advancing towards EAF commissioning, expected at the end of 2024.” Garcia added.
The company says the lower income was due primarily to a lower selling price for steel and higher costs for key inputs.
Operating expenses rose in the first quarter to $639.5 million from $576.8 million.