Algoma Steel Posts $80M-$90M Q3 Loss, Cuts Shipments Amid Tariffs
Algoma Steel Group Inc. has announced a significant downturn in its third quarter results. The company expects an adjusted loss before deductions of between $80 million to $90 million, a stark contrast to last year's adjusted earnings of $3.5 million. This decline is attributed to U.S. tariffs and global overproduction in the steel sector.
Algoma Steel has also revealed that its steel shipments for the third quarter are projected to be between 415,000 and 420,000 net tons. This is a decrease from the 520,443 net tons shipped in the same period last year.
In response to these challenges, the company has secured a loan package worth $500 million from the federal and provincial governments. This funding will assist Algoma Steel in navigating trade issues and reorienting its production towards the Canadian market.
David Sgro has stepped down from the board of directors for personal reasons. No further details about his resignation have been provided.
Algoma Steel Group Inc. faces a substantial loss in the third quarter, with shipments also expected to decrease. The company has secured significant financial support to help it adapt to current market conditions. The resignation of David Sgro from the board of directors has been announced, but no further details are available.
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