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Algoma Steel Reports Consolidated Loss From Operations in Fiscal First Quarter
Substantial Decline Compared to Prior-Year Quarter
SAULT STE. MARIE, ONTARIO – Algoma Steel Group Inc. (Algoma or the Company) has reported a consolidated loss from operations of $125 million during its fiscal first quarter ended June 30, 2023. This represents a significant decrease compared to the income from operations of $164.3 million reported in the same quarter of the previous fiscal year.
Factors Contributing to the Loss
The loss from operations was primarily attributed to a decline in steel prices and an increase in costs, including raw materials, energy, and labor. The global economic slowdown has reduced demand for steel, leading to a decrease in prices. Additionally, the ongoing supply chain disruptions and geopolitical uncertainties have contributed to the rise in costs.
Algoma is implementing various measures to mitigate these challenges, including cost reduction initiatives and exploring new market opportunities. The Company remains committed to its long-term growth strategy and believes it is well-positioned to navigate the current market environment.
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