Tree Island Steel reports Q3 results
- Tree Island Steel press release (OTCPK:TWIRF): Q3 revenues decreased by C$4.4 million to C$80.2 million from a year ago, with lower U.S. demand, particularly in the construction and industrial market segments.
- Gross profit for the third quarter decreased to C$14.6 million, from C$21.8 million in the same period in 2021 from lower volumes.
- Adjusted EBITDA amounted to C$12.2 million, compared to C$20.0 million during the same period in 2021.
- In the third quarter of 2022, the company said it experienced increased volume over prior year third quarter in the Canadian market, notably in the agricultural and commercial construction market segments, supporting fencing, agricultural wire and welded wire reinforcement product demand.
- However, demand slowed in the U.S. market in the quarter, with residential, commercial construction and industrial customers reducing purchasing volume in volatile economic conditions.
- On November 10, 2022 the Board of Directors declared a quarterly dividend of C$0.03 per share and an additional C$0.02 per share as a special dividend on the issued and outstanding Common Shares of the Company, payable on January 16, 2023 to holders of record at the close of business on December 31, 2022.
- On November 7, 2022 the company announced that it has renewed its NCIB to purchase up to 1.41M shares. The period of the normal course issuer bid will extend from November 9, 2022 to November 8, 2023.
- “With the near term economic uncertainty, we remain cautious in our outlook for steel wire and wire products, requiring ongoing diligent management of raw materials, finished goods inventory and overall financial position,” President and COO Remy Stachowiak said.