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HAMILTON, ON, Jan. 6, 2022 /CNW/ - Stelco Holdings Inc. (TSX:
STLC) ("Stelco" or the "Company") announced today
that the Company shipped approximately 625,000 net tons of steel in
the fourth quarter of 2021, well below prior guidance of
approximately 675,000–680,000 net tons. Shipments in the fourth
quarter were negatively impacted by various production challenges,
including unplanned outages on its hot strip mill, logistics
challenges, and delays at the end of the fourth quarter brought on
by the emergence of the Omicron variant which affected Stelco, its
customers and logistics suppliers. Stelco is also providing
guidance for the first quarter of 2022 of steel shipments at or
potentially lower than the fourth quarter's. The lower guidance for
the first quarter is due to planned outages that have been advanced
in response to the unplanned outages experienced in the fourth
quarter, recent softer price environment and weaker demand
conditions being experienced currently, as well as increased
COVID-19 related disruptions with respect to labour force
availability, which is impacting production, logistics and customer
demand.
About Stelco
Stelco is a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North
America. Stelco produces flat-rolled value-added steels,
including premium-quality coated, cold-rolled and hot-rolled sheet
products, as well as pig iron and metallurgical coke. With
first-rate gauge, crown, and shape control, as well as uniform
through-coil mechanical properties, our steel products are supplied
to customers in the construction, automotive, energy, appliance,
and pipe and tube industries across Canada and the
United States as well as to a variety of steel service
centres, which are distributors of steel products. At Stelco, we
understand the importance of our business reflecting the
communities we serve and are committed to diversity and inclusion
as a core part of our workplace culture, in part, through active
participation in the BlackNorth Initiative.
Forward-Looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities laws. Forward-looking
information may relate to our future outlook and anticipated events
or results and may include information regarding our financial
position, business strategy, growth strategy, budgets, operations,
financial results, taxes, dividend policy, plans and objectives.
Particularly, information regarding our expectations of future
results, performance, achievements, prospects or opportunities is
forward-looking information. In some cases, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "targets", "expects" or "does not
expect", "is expected", "an opportunity exists", "budget",
"scheduled", "estimates", "outlook", "forecasts", "projection",
"prospects", "strategy", "intends", "anticipates", "does not
anticipate", "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might", "will", "will be taken", "occur" or "be
achieved". In addition, any statements that refer to expectations,
intentions, projections or other characterizations of future events
or circumstances contain forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events or circumstances. These
statements include, without limitation, statements regarding
Stelco's shipping volumes during the first quarter of 2022.
Key Assumptions Underlying our Shipping Volume Estimates for the
First Quarter of 2022
The estimates with respect to our shipping volumes during the
first quarter of 2022 referenced in this press release are based on
a number of assumptions in addition to the foregoing assumptions,
including, but not limited to, the following material assumptions:
the Company's ability to continue to access the U.S. market without
any adverse trade restrictions; no significant legal or regulatory
developments, changes in economic conditions, or macro changes in
the competitive environment affecting our business activities;
upgrades to existing facilities remaining on schedule and on budget
and their anticipated effect on revenue and costs; the Company's
ability to attract new customers and further develop and maintain
existing customers; currency exchange and interest rates; the
impact of competition; and growth in steel markets and industry
trends. We believe that our performance and our ability to achieve
these shipments during the first quarter of 2022 depend on a number
of material factors including: (i) sustained global demand growth;
(ii) continued steel production capacity curtailments in
China; (iii) continued fair trade
practices, particularly with respect to the North American market;
(iv) the COVID-19 pandemic not having an adverse impact on North
American demand for our products; (v) continued signs of a broad
economic recovery, together with ongoing economic support from
federal, provincial, and local governments in respect of the
COVID-19 pandemic; and (vi) stable supply and demand fundamentals
in the rest of the world. These factors are also subject to a
number of inherent risks, challenges and assumptions.
Undue reliance should not be placed on forward-looking
information. The forward-looking information in this press release
is based on our opinions, estimates and assumptions in light of our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Further, forward-looking information is subject to known
and unknown risks, uncertainties, assumptions and other factors
that may cause the actual results, level of activity, performance
or achievements to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to, those described in this press release. Certain
assumptions, risks and uncertainties in respect of: the
utilization of and access to our production capacity; planned
outages that have been advanced in response to the recent softer
price environment and weaker demand conditions being experienced
currently; capital expenditures associated with accessing such
production capacity; the impact of COVID-19 on our business
(including labour force availability and the impact on our
production, logistics and customers' facilities) and the broader
market in which we operate; the market's ability to recover from
COVID-19; upgrades to our facilities and equipment; our research
and development activities associated with advanced steel grades;
our ability to source raw materials and other inputs; our ability
to supply to new customers and markets; our ability to effectively
manage costs; our ability to attract and retain key personnel and
skilled labour; our ability to obtain and maintain existing
financing on acceptable terms; currency exchange and interest
rates; the impact of competition; changes in laws, rules, and
regulations, including international trade regulations; and growth
in steel markets and industry trends are material factors made in
preparing the forward-looking information and management's
expectations contained in this press release and that may cause
actual results to differ materially from the forward-looking
information disclosed in this press release. Additional information
about the risks and uncertainties of the Company's business and
material risk factors or assumptions on which information contained
in forward–looking statements is based is provided in its
disclosure materials, including the Company's most recently filed
annual information form and any subsequently-filed interim
management's discussion and analysis, which are available under our
profile on SEDAR at www.sedar.com.
Although we have attempted to identify important assumptions and
risk factors that could cause actual results to differ materially
from those contained in forward-looking information, there may be
other risks not presently known to us or that we presently believe
are not material that could also cause actual results or future
events to differ materially from those expressed in such
forward-looking information. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward looking information, which speaks only as of the date
made. The forward-looking information contained in this press
release represents our expectations as of the date of this press
release and are subject to change after such date. Stelco disclaims
any intention or obligation or undertaking to update publicly or
revise any forward-looking statements, whether written or oral,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Stelco