The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Philip Gibbs - KeyBanc Capital Markets Inc - Analyst
: Hey, good morning. Hey, Jeff and Tim, can you maybe give us a little bit more color on the Sitem transaction, particularly in terms of the mezzanine
financing structure. It's certainly something pretty unique, particularly when foreign currency is involved. So I think we're just trying to get a feel
for how much you actually paid for Sitem, the 52% stake, this go around and maybe what could be the residual unclear to us how much cash went
out the door initially here.
Question: Philip Gibbs - KeyBanc Capital Markets Inc - Analyst
: Thank you. And regarding automotive, certainly some very strong share gains with the big three, as you mentioned, Geoff, in your prepared remarks.
What do you see moving forward for automotive? And is there more opportunity to layer in more business or share in '26?
Question: Philip Gibbs - KeyBanc Capital Markets Inc - Analyst
: Thanks, Tim. And the last question I have is just because I've been getting it from investors is the derivative Section 232 tariffs on electrical steel
laminations. Certainly, you've got operations north and south of the border. And I think the crux of the question is how do you manage through
that environment and continue to try to achieve your profitability goals and volume aspirations? Thanks.
Question: Philip Gibbs - KeyBanc Capital Markets Inc - Analyst
: Thank you.
Question: John Tumazos - John Tumazos Very Independent Research LLC - Analyst
: Thank you for taking my question. The August 11, US Steel coke accident took out 1.7 million tons of coke capacity for them, which I guess equates
to 3 million to 4 million tons of slabs. Presumably, my first question is Worthington is a preferred customer and you've had no disruption or
interruption.
The second question, should we interpret that as taking 3 million to 4 million tons of crude capacity out of the market until fixed? Or would you
expect US Steel to pay extra to buy third-party coke to buy prime scrap $450, $500 a ton or buy slabs, which with tariffs are harder to get by to?
Question: Martin Englert - Seaport Research Partners - Analyst
: Hello. Good morning, everyone. Question on the direct volumes were 63% of the mix, toll volumes down 22% year-on-year. How much of the toll
decline was related to the closure of Worthington Samuel versus mill and other customers? Is that just that 100,000 that you cited earlier as far as
the Worthington Samuel portion? Or is there something different going on there?
Question: Martin Englert - Seaport Research Partners - Analyst
: Okay. Would you generally expect to remain above that 60% level that we've been at for the past couple of quarters?
Question: Martin Englert - Seaport Research Partners - Analyst
: Okay. Can you discuss what you're seeing so far with volumes in fiscal 2Q, including seasonal factors that we should be taking into consideration,
Question: Martin Englert - Seaport Research Partners - Analyst
: With recent orders, are you seeing any change in upstream mill order books and lead times?
Question: Martin Englert - Seaport Research Partners - Analyst
: Okay. Appreciate it. Thank you very much.
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