Tree Island Steel reported revenues, including fasteners, dropped 23% to $52.6 million in the second quarter of 2019, hurt by U.S. Section 232 steel tariffs and reduced demand for construction products. Despite the higher average selling prices in Q2, lower demand and production volumes drove a 42% gross profit decline to $4.9 million.

Q2 operating income plummeted 74% to $1.14 million, producing a net loss of $535,000.

“Our Q2 financial results were in part impacted by Section 232 steel tariffs and overall weaker demand in our end markets,” stated CEO Dale MacLean.

Revenue during the first six months of 2019 fell 21.5% to $105.6 million, “mostly attributable to lower sales volumes to U.S. customers as impacted by Section 232 steel tariffs and adverse weather conditions for construction earlier in the year.” Gross profit declined 36% to $9.7 million, producing a gross profit margin of 9.2%.

Six-month operating income dropped 76% to $1.64 million, while net loss totaled $1.63 million. Web: TreeIsland.com