Issue 31 – A Stellar Quarter For Stelco
On August 1, 2018 Stelco Inc (TSX:STLC) announced a very strong second quarter. Revenue came in at $711 million versus the street estimates at $586.5 million. Even thought the company incurred $11 million of cost from the Trump tariffs, the company’s EBITDA came in at $175 million beating consensus at $141.6 million. In addition, margins continued to expand as management focusses on efficiency. For example, STLC has added distribution capacity through additional rail cars and has also implemented inventory management tools to alleviate inventory build.