Tree Island Steel reported revenues edged up 0.2% to $235.3 million in 2018. Gross profit increased 42% to $25.8 million, from $18.2 million; and gross margin was higher at 11% “despite the impact of U.S. Section 232 tariffs on overall volumes.” The higher gross margin contributed to EBITDA nearly doubling to $13.4 million. 

“2018 marked another year of volatility in the macro economic environment,” stated CEO Dale MacLean.

Revenue during the final quarter of 2018 decreased 17.7% to $44.9 million as steel import tariffs and the seasonal nature of the residential construction business impacted demand.

“Improved product pricing over the comparative quarter, combined with a more profitable product mix and emphasis on cost controls, contributed to Tree Island’s overall profitability during the quarter.,” the company stated. 

Q4 gross profit rose 48% to $3.7 million, while gross margin strengthened to 8.2%. EBITDA amounted to $1.1 million, compared to $1.9 million during the same period in 2017. Web: TreeIsland.com