Question · Q3 2015
Doug Weiss of DSW Investment inquired about the performance of the supply chain business, the strategic goal of the banking initiative, associated credit risks, and the plan for the discontinued Wabush asset.
Answer
CEO Gerardo Cortina acknowledged that the supply chain business was affected by the struggling steel industry, leading to a focus on cost and working capital reduction. He and CFO Sam Morrow explained the banking initiative aims to offer financial services to their existing customer base to improve margins, not just to invest cash. Morrow added that credit risk in factoring would be mitigated with additional protection and that the Wabush asset rationalization is pending the conclusion of CCAA proceedings.