Stelco expects $44 million loss in first quarter

Canada's largest steelmaker said today that it expects to announce a $44 million loss when it releases its first-quarter results next week.

The following is the full text of a news release issued by the company:

***************************************************************** HAMILTON, ON, April 16 - Stelco Inc. announced today that it estimates a net loss for the first quarter 2003 of $44 million ($0.45 per common share).

This loss compares with a fourth quarter 2002 profit of $22 million or $0.18 per common share (including a one-time fourth quarter non-cash tax credit to earnings of $0.08 per common share) and a first quarter 2002 loss of $32 million ($0.33 per common share).

The major factors contributing to the reduced first quarter 2003 results compared with fourth quarter 2002 are lower average revenue per ton, increased energy and operating costs, and costs related to the closure of Welland Pipe Ltd.

The net short-term bank debt position of $102 million at March 31, 2003, increased $24 million from December 31, 2002. Stelco's first quarter results will be released the morning of Wednesday, April 23, 2003, with a conference call to be held at 11:00 a.m. on that day.

No further comment on the Corporation's results will be made until that time.

Stelco Inc. is Canada's largest and most diversified steel producer.

Stelco is involved in all major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.

Stelco has a presence in six Canadian provinces and two states of the United States.

Consolidated net sales in 2002 were $2.8 billion. This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions.

Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2002 Annual Report.

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