Particle.news
Download on the App Store
4 ARTICLES
·
3mo ago

Algoma Steel Names CFO Rajat Marwah CEO as Tariffs Drive Deep Quarterly Loss

Tariffs that closed off U.S. sales are forcing a pivot to plate.

A worker is shown at Algoma Steel in Sault Ste. Marie, Ontario on Friday, April 25, 2025. THE CANADIAN PRESS/Sean Kilpatrick
A piece of flattened steel will be rolled across cooling bed and cutting units at the newly modernized Discrete Plate and Heat Treat Facility at Algoma Steel in Sault Ste. Marie, Ontario on June 21, 2024, where metal can be made into sheets of steel by taking it through a series of hot levelling and flattening processes. (Deborah Baic / The Globe and Mail)

Overview

  • CEO Michael Garcia will retire at year-end, with longtime executive and current CFO Rajat Marwah set to become chief executive on Jan. 1.
  • Algoma posted a third-quarter net loss of $485.1 million, or $4.46 per share, reflecting a writedown exceeding $500 million, with revenue down to $523.9 million and shipments at 419,173 tons.
  • Tariff costs totaled $89.7 million in the quarter after the U.S. levy rose to 50 percent in June, leaving the U.S. market largely closed to Algoma, which previously derived about 60 percent of revenue there.
  • The company plans to shift production from coil to steel plate to reduce tariff exposure and costs, leveraging its position as Canada’s sole plate producer with applications that include defence.
  • Algoma is accelerating its transition to electric arc furnaces, targeting a five‑day‑per‑week schedule in mid‑November and hastening the shutdown of its blast furnace, supported by $500 million in federal and Ontario liquidity loans.