Evraz, owner of a steel mill in Claymont, Del. posted a quarterly loss of $50 million. Reuters reported analysts had expected the company to remain profitable in spite of weak demand for steel in Europe.
The company, based in London, is controlled by Russian industrialist Roman Abramovich. Companies controlled by Abramovich and other Rusians snapped up assets after the fall of the Soviet Union. Evraz later expanded worldwide with buyouts of mills that included Claymont Steel.
In its earnings report, Evraz said it posted a satisfactory performance, given the challenges facing the steel market. It plans to invest in coal and iron mining.
Steel demand has been stronger in the U.S., but that did not stop the apparent liquidation of the massive Sparrows Point mill complex in Baltimore.
RG Steel, the company that owns the complex filed for Chapter 11 bankruptcy protection in Delaware, with the proceedings amounting to an auction of assets that include other mills in Ohio and West Virginia.
The Claymont mill uses scrap from automobiles and other sources to pour steel plates that are used in construction and other areas. The company has said the mill specializes in quick turnarounds of orders. Evraz has made agreements with the State of Delaware regarding dust and emissions coming from the mill.
Click here for a link to the earnings report, which is calculated in U.S. dollars