Lakeside Steel Inc. announced its fiscal first-quarter operations update for the three months ended June 30, 2010 (Q1 2011), including preliminary numbers suggesting shipments of 53,719 tons—a 268% improvement over Q1 2010, and a 35% improvement over Q4 2010.
Lakeside notes that these shipments would represent a new quarterly shipping record for the company. The previous record was 42,992 tons set in Q1 2008.
Lakeside expects revenues of $62.2 million, an improvement of 289% compared to Q1 2010 and of 42% over Q4. During the quarter, Lakeside set the following operational records:
- Lakeside tons produced, and shipped, in one month
- Lakeside tons produced, and shipped, in one quarter
- SRM tons produced in one month and in one quarter
For the second quarter ending September 30, 2010, Lakeside anticipates shipments of 52,500 tons and revenues of $70 million. The increase in revenue per ton is largely attributable to a higher value-added product mix.
"Lakeside continues to produce high-quality, ‘Made in Canada,’ leading-edge technology products required by our customer base in Western Canada, Texas, and the Marcellus Shale,” said Ron Bedard, Lakeside Steel's President and COO. “Having secured load out to September 2010, we continue to focus on higher value-added products, best-in-class quality, certainty of supply for our North American customers, and enhanced customer service.
“We are optimistic that this strong operational performance will continue over several quarters. Lakeside continues to focus on reducing costs, improving our balance sheet, and potential opportunities for growth," Bedard added.
Lakeside Steel, located in Welland, Ont., is a diversified steel pipe and tubing manufacturer. Lakeside's customers include large oil and gas, mining, automotive and commercial and industrial supply companies. Lakeside also manufactures pipe and mechanical tubing for the resale market, which is sold to distributors in Eastern Canada and the Northeastern United States. Lakeside manufactures a variety of products for these industries including oil well tubing and casing, mechanical tubing, pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside serves customers worldwide, either directly or indirectly, in Canada and the United States.