Algoma Steel Group (NASDAQ:ASTL), a prominent Canadian steel producer, has released its financial results for the fiscal first quarter ended June 30, 2024.
The company reported consolidated revenue of $650.5 million, a notable decrease from the $827.2 million recorded in the same quarter last year.
This decline is primarily attributed to lower steel shipments and realized prices.
The company faced a consolidated loss from operations of $12.5 million for the quarter, a significant shift from the income of $164.3 million reported in the prior-year quarter.
Amidst this operational loss, Algoma Steel posted a net income of $6.1 million, a markedly lower figure than the $130.9 million earned in the corresponding quarter of the previous year.
Adjusted EBITDA for the quarter came in at $37.7 million, with an adjusted EBITDA margin of 5.8%.
This contrasts sharply with the prior-year quarter's adjusted EBITDA of $191.2 million and a margin of 23.1%.
Cash flows generated from operations totaled $12.5 million, a steep decline from the $163.9 million generated in the same period last year.
The company also reported steel shipments of 503,152 tons, down from 569,433 tons in the previous year.
Despite the challenging quarter, Algoma Steel maintained its commitment to shareholders, paying a quarterly dividend of US$0.05 per share.