Lowered guidance 2023 9 monthsSP down on lowered guidance, thus the sudden reactionary price drop today. Price/book 0.58 and PE less than 2, I'm not phased given patient approach to forward earnings, revenue, innovations and productivity. I am long ASTL. From SEDAR Jan 9:
Algoma Steel Provides Fiscal Third Quarter 2023 Guidance
January 9, 2023
SAULT STE. MARIE, Ontario, Jan. 09, 2023 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today provided guidance for its fiscal third quarter 2023. Unless otherwise specified, all amounts are in Canadian dollars.
Fiscal third quarter 2023 total steel shipments are expected to be approximately 455,000 tons and Adjusted EBITDA is expected to be in a range of $(35) million to $(45) million.
Michael Garcia, the Company’s Chief Executive Officer, commented, “The sequential decrease in steel shipments and Adjusted EBITDA as compared to the fiscal second quarter 2023 is largely due to lower than expected plate shipments, continued softening in steel pricing, and normal seasonal maintenance activities ahead of winter, which we discussed on our most recent earnings call on November 8, 2022. Despite a return to more typical levels of unfinished plate production, total plate shipments were adversely impacted by temporary downstream finishing constraints as we ramped up plate production. These impacts to Adjusted EBITDA adversely offset the expected benefit of higher sequential production volumes from the Direct Strip Production Complex operations as compared to the fiscal second quarter 2023.”
Mr. Garcia continued, “We expect to produce Adjusted EBITDA of $395 million to $405 million for the first nine months of our fiscal 2023. I am pleased that the plate mill has resumed normal production levels. We expect to return to more normalized shipments in calendar 2023, and to apply the lessons learned during phase one of the Plate Mill Modernization to our future capital projects. This will reflect the more robust earning power of Algoma. We remain laser focused on completion of our transformative electric arc furnace project, which remains on budget and on track to be producing steel in calendar 2024, as we transition to being one of the greenest producers of steel in North America.”