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Stelco shares climb more than 10 per cent as CEO downplays tariff impacts

Rolls of coiled coated steel are shown at Stelco before a visit by the Chrystia Freeland, Minister of Foreign Affairs, in Hamilton on Friday, June 29, 2018. THE CANADIAN PRESS/Peter Power

HAMILTON — Shares of Stelco Holdings Inc. have climbed more than 10 per cent after the company downplayed expected impacts of tariffs.

The Hamilton-based steel producer says it paid about $39 million in tariffs in the third quarter but expects a meaningful drop the fourth quarter as it sells more products into the Canadian market.

The company reported adjusted earnings of $135 million or $1.52 per share, compared with analyst expectations of $164 million or $1.54 per share according to Thomson Reuters Eikon.

Despite the miss, shares were up $1.82 or 10.1 per cent at $19.87 in mid-afternoon trading on the Toronto Stock Exchange. 

Stelco chief executive Alan Kestenbaum said in an earnings conference call that the company’s investments in higher-quality products has helped open more opportunities, including within the automotive sector.

He says the company is also looking to create more value on the real estate side. Stelco bought more than 1,200 hectares of land in June, including nearly 324 hectares in the Toronto-Hamilton area.

 

Companies in this story: (TSX:STLC)

The Canadian Press