05:03 PM EDT, 08/01/2024 (MT Newswires) -- Tree Island Steel ( TWIRF ) on Thursday said its second quarter profit fell on lower revenues and volumes, as it flagged more "headwinds" to be faced in the second half.

The company said it earned $0.61 million, or $0.02 per share, in the period down from $1.65 million or $0.06, a year earlier. There were no Capital IQ forecasts available.

Revenue fell 15% to $54.0 million from $63.6 million, while adjusted EBITDA fell to $2.9 million form $6.8 million.

The company said the largest drivers for the weaker earnings are lower average selling prices and a reduced spread over raw material costs. To a lesser extent, the shutdown of its Etiwanda facility last year also impacted the volumes and revenue.

"The first half of the year was challenged with customers conservatively managing their inventories and selling prices trending lower, resulting in further compression in our gross profit margins. We expect these headwinds to continue into the second half of the year," chief operating officer Nancy Davies said in a release.

Tree Island shares closed up $0.05 to $2.94 on the Toronto Stock Exchange.