Algoma Steel Group Inc. says its fourth-quarter shipments are expected to be down compared with the third quarter due to challenges across its logistics supply chain and COVID-related impacts.

The steelmaker says the outlook for the quarter ended March 31 includes the impact of the work stoppage at Canadian Pacific Railway that began Sunday.

The railway has reached a deal with its union and workers were back on the job Tuesday, but Algoma says it had made preparations in case of a prolonged outage. 

Algoma expects to end the quarter with above average work in process and finished goods inventories to fulfil deferred shipments in future periods.

The company says shipments in its fourth quarter are expected to be in a range of 540,000 to 550,000 tons. Algoma shipped 553,000 tons in its third quarter.

Adjusted earnings before interest, taxes, depreciation and amortization for the fourth quarter are expected to be in a range of $310 million to $320 million.