Stelco Holdings Inc., barely a year after emerging from creditor protection, will pay out a special dividend after reporting second-quarter financial results.
The $1.69-a-share dividend comes on top of the steel maker’s regular quarterly dividend of 10 cents a share, the company said Tuesday.
“We have a strong balance sheet, a healthy cash position, and a $375-million revolver that is completely undrawn,” chief executive officer Alan Kestenbaum said in a statement accompanying the financial results. We are maintaining significant liquidity, financial strength, and flexibility to drive both inorganic and organic growth through accretive transactions and growth initiatives in our core steel business.”
Stelco said it lost $12-million in the three months ended June 30, compared with a profit of $3.6-billion a year earlier, but much of that profit came from debt elimination and other special items as the company exited protection under the Companies’ Creditors Arrangement Act.
Adjusted profit in the most recent quarter was $153-million compared with a $3-million loss a year earlier. The loss was 12 cents a share. Share profit for the earlier quarter was not available.
Revenue rose to $711-million from $427-million. The average selling price rose to $898 a ton from $828 a year earlier.