Hamilton workers continue to be locked out as US STEEL profits jump in 2 quarter

U.S. Steel has reported a sharp jump in second quarter profits.
Late Monday the company released its second quarter results showing net income of $222 million, a sharp turnaround from losses of $86 million in the first quarter of this year and $25 million in the second quarter of last year.

In a news release, company CEO John Surma said, “Our operating results improved significantly from the first quarter, driven primarily by higher average realized prices and stable raw materials costs in our flat-rolled segment. U.S. Steel Europe segment results were slightly lower, reflecting significantly lower shipments and capacity utilization and increased raw materials costs, partially offset by higher average realized prices. Tubular segment results were in line with the first quarter of 2011.”
The company reported second quarter income from operations of $300 million, compared to a loss from operations of $91 million in the first quarter of 2011 and income from operations of $198 million in the second quarter of 2010.

The flat-rolled segment, which includes the company’s operations in Hamilton and Nanticoke, led the recovery, posting income from operations of $374 million compared to a first quarter loss of $36 million and a second quarter profit of $111 million last year.
The company said flat-rolled income from operations improved to $95 per tonne from the first quarter, driven largely by an $83-per-tonne increase in average prices. The company also reported it spent another $40 million to keep the Hamilton plant’s coke ovens operating despite locking out unionized employees since last November.

Raw steel capability utilization rate in the second quarter was 81 per cent for the flat-rolled segment and 90 per cent for the company as a whole, excluding the Hamilton Works.
Year-to-date results show a profit of $209 million compared to a profit of $141 million for the first six months of 2010.

Looking ahead, Surma said in a news release the company expects lower results for the third quarter, reflecting the continued uneven economic recovery in the U.S.
“The United States and Europe continue to face an uneven economic recovery. The continuing fiscal uncertainty in the U.S. and Europe is not helping the situation,” he said. “Reflecting the effects of a slowing economy, we expect to report an overall lower operating profit in the third quarter; however, we expect significant improvement in our tubular operating income compared to the second quarter of 2011.”
The company added flat-rolled results for the third quarter are expected to decline reflecting lower prices because of rising capacity and imports.
Surma is to explain the company’s results to industry analysts in a conference call set for Tuesday afternoon.

THE SPEC 
sarnold@thespec.com

Forest fire evacuations send residents to Hamilton

Hamilton is ready to welcome residents fleeing fire-ravaged northwestern Ontario this weekend, even as the need for more evacuations changes “by the hour.”
Nearly 3,600 northern Ontario residents were leaving due to heavy smoke and spreading forest fires as of Friday afternoon, with some headed to southern Ontario communities.
Greg Flood, spokesperson for Emergency Management Ontario, said no more flights to the Toronto area were expected Friday.

“There are now no additional communities under immediate threat from fire or smoke,” he said.
That situation, however, could change “by the hour.”
Flood didn't rule out a call for Hamilton's help over the weekend, as more than 2,000 firefighters and support staff wage a see-saw battle against 111 fires blazing across 500,000 hectares of forest.
Hamilton Mayor Bob Bratina said the city remained on “standby” Friday, despite the cancellation of planned Thursday flights that would have brought as many as 80 evacuees to the Steel City.
He praised local residents for repeated offers of help.

Bratina said City Hall has been inundated with calls from citizens wanting to know what they could do for the homeless residents, many of whom are from remote northern First Nations communities.
“The answer is: we're not sure yet,” he said.
Bratina said any evacuees who end up in Hamilton will be housed in the correctional training facility on Beach Boulevard, which has room for up to 240 people.
Officials from Six Nations of the Grand River are also interested in hosting evacuees, if needed, said spokesperson Karen Best.
But Best said officials are waiting for an official request from Emergency Management Ontario before putting a plan into action.

  

Hottest Day Ever in Hamilton?

Hamilton could break a record for hottest day ever today as temperatures could go above the projected high. The honour currently goes to a July scorcher in 1911 when the thermometer topped 41 C, according to Environment Canada.

It's just after 9 a.m. and Hamilton has already set a record for the warmest morning, as measured at John C. Munro Hamilton International Airport.

The minimum temperature observed this morning was 25.2 C. By 8 a.m. with the sun still making its way up in the sky, the temperature had already climbed to 28 C with a humidex of 40. The normal at this time is supposed to be around 17 C.
The temperatures are set to climb to 37 Celsius. But with the humidex, it will feel like 48.
That’s as hot as Austin, Texas, as Dubai or Jerusalem.

Suspicious Stoney Creek Fire Investigated

A Thursday night blaze behind a Stoney Creek business plaza is being investigated as a suspicious fire.
Firefighters arrived to find a fire in a garage behind a business mall at 360 Hwy. 8 around 9 p.m. The fire was located in a tough spot were fire trucks couldn’t get to, so Kilbourn Avenue was used for easier access to the blaze.
They doused the blaze before it spread to surrounding businesses, which include doctors’ offices and a pharmacy.
No one was hurt in the fire, which officials estimated caused about $50,000 in damage.
Fire officials said Friday morning the Ontario Fire Marshal’s office had been notified.

Local Hamilton talent Mark Kasprzyk from the band Redlight King samples Neil Young

Sampling is the act of borrowing or using portions of an existing record for a new song.

Local musician Mark Kasprzyk persisted until the Canadian legend Neil Young gave him the green light to use a sample of the classic Old Man.

His new band, Redlight King, is the first to be granted Young’s personal permission to sample the track.

“It might come across as arrogant, but I always knew he’d like (my version),” said Kasprzyk, who also goes by Kaz.

Kaz is a local boy, best known for his time in Kazzer, a Hamilton-based band that pumped out the 2002 hit Pedal to the Metal. His inspiration for Old Man wasn’t actually Young himself, but a falling out he’d had with his father, an engine builder from Binbrook.
The song was already in the works, referred to initially as Hardworking Hands. When Young’s Old Man came on the radio during a drive to his Hamilton studio, he started mixing and building the track as a guilty pleasure. He never planned on putting it out.
But then he played it for his label in Los Angeles, and they loved it — and knew Young would, too. They approached Young’s people. Everyone said no, without even playing the song.
Eventually Bob Cavallo, president of Hollywood Records, convinced Young to have a listen. And they were right. He gave the thumbs-up.

“It’s thrilling, I’m a big Neil Young fan,” Kaz said. “It’s important. I think it introduces a guy like Neil Young to a whole new generation of listeners. Kids are going to know where it comes from.”
The band’s debut album, something for the Pain, was produced in L.A., but was written with a Hamilton influence.
“I can’t say enough about this place. There’s no shortage of world-class musicians here,” he said. “I wear this city like a badge of honour when I play. I make sure to kill it every night.”
City Life, another song on the album, is a testament to his love for his hometown.
The upcoming video was shot in town (by local director Chris Stacey) with Hamilton’s trademark grit as a backdrop — they filmed under the Burlington Bridge, around north end streets where Kaz bought a house after his Kazzer success. They even snuck onto the field at Ivor Wynne.
His dad was a drag racer in town, which was the inspiration for the band’s name: his car was called Redlight Bandit.
“We’d go up to Dragway Park in Cayuga every Sunday. Saturday we’d fire up the cars and Sunday we’d go to the races. We lost every Sunday,” he laughed.
But that same persistence is present in his career as a musician.
These songs are reflective, they’re about moving forward, but they come from a dark place. When management changes and poor record sales left Kazzer dropped from Sony BMG, Kaz’s career floundered. He struggled with drug and alcohol problems.
A former one-hit wonder, he’s not worried about that fate with this record — or at all.
“That never bothered me, better one hit than none, right?” he said. “I’m not making records to win trophies. I live and breathe music.”
“Plus, we’ve had two hits, so we’re in the clear.”
Personal approval from one of the greatest musicians alive probably doesn’t hurt either.

mhayes@thespec.com THE SPEC

US STEEL lock out reaches longest in history

The bitter lockout of U-S Steel Canada employees has come to a sad milestone.
The Hamilton dispute will have been longer than the eight-month lockout endured by Lake Erie Works employees over the same issue last year.

It will also become the longest labour confrontation in the history of the former Stelco.
The 900 workers of the former Stelco operations have been locked out since November in a dispute over pension plans.
That’s 242 days with no sign of movement on either side.