Stelco Q2 Net Income Rises 53% To $554 Million

Stelco Holdings’ (STLC) second quarter net income increased 53% from a year earlier to $554
million or $7.67 per share.

The Hamilton-based steelmaker said the earnings growth was due to $260 million it received
from the sale and leaseback of land and buildings, as well as growth in its operating income.

The company's revenue in the April through June quarter amounted to $1.037 billion, up 13%
from the same period in 2021, and up 14% from this year’s first quarter.

Looking forward, Stelco said that North American steel prices have declined by 40% since their
April peak, and that the company is also being impacted by higher prices for coal and alloys.

As such, Stelco said that its third quarter earnings will likely be below the Q2 results, with further
weakening expected through year end.

Stelco’s stock is down 6% year-to-date and changing hands at $37.55 per share.