Algoma Steel reports Q4 EPS (19c) vs. $1.45 last year

Reports Q4 revenue $677.4M, consensus $669.95M. CEO Michael Garcia commented, “Our results for fiscal Q4 of 2023 were in line with our previously disclosed outlook. Following a period of dynamic commodity prices and operational improvements, the quarter saw plate and strip operations return to normal production levels. We expect to continue this momentum into FY24, with expected strong first quarter shipments and operating cash flow…As we enter the next phase of the project, inflationary pressures on construction costs and materials are currently estimated to increase spending on the project beyond our original budget estimates by approximately $125M-$175M, with the impact coming across the balance of the project. In addition, global supply chain disruptions affecting certain micro-processing chips are estimated to extend the targeted commencement of start-up activities to calendar year-end 2024. In FY24, we are continuing our commitment to focused execution at our existing facilities while simultaneously advancing construction of our transformative EAF project. Importantly, we continue to expect to fund the project with a combination of cash on hand, strong operating cash flows from continuing operations at normal production levels through completion of the EAF commissioning process, and available borrowings from the company’s undrawn and recently upsized and extended ABL credit facility.”