Steelmaking journal: Ironmaking steelmaker’s biggest earnings jump yet
A steelmaker that has grown to become one of the nation’s most important players in the ironmaking industry, and whose revenue and profit grew the most in the past two years, has seen its shares rise by more than 70% in 2017 to a record $7.2 billion.
The ironmaking company, Iron Mountain Corp., said Tuesday that revenue surged 73% in the year to Jan. 31, the most recent period for which it has available data.
Iron Mountain also reported record quarterly profit growth, thanks in part to an increase in iron ore exports to Asia, a boost in iron mining in the United States and overseas, and increased steelmaking production.
“We are very pleased with our earnings growth, especially considering the strong U.S. dollar,” CEO and founder Joe Gebbia said in a statement.
“Iron Mountain continues to grow our sales, our profits, and our margins to bring our company into a position where we are ready to take advantage of the coming changes in the steelmaking industry.”
Iron Mountain has been profitable since 2009, but its share price has plunged in recent years, driven in part by the rise in the cost of iron ore in the U.K. and China.
Gebbi said in the statement that Iron Mountain’s outlook for the year remains strong, pointing to “a continuing shift to more value-added products” as well as the company’s expansion of production in Canada.
Iron Mining in the US has also been booming, with steelmakers such as American Steel Corp. and Northrop Grumman Corp. making significant investments in the mining and production of American-made steel.
But the industry is expected to continue to struggle in the years ahead, as many companies struggle to meet the growing demand for products such as lightweight, lightweight steel.
Ironmakers have been making money off of steelmaking for decades.
The steel industry is a key component of the U:S.
economy, employing more than two million people.
It employs more than 300,000 workers in the country, according to the Bureau of Labor Statistics.
Iron mining is the second-largest industry in the world, behind coal mining, and the third-largest in the global economy.