Algoma Steel Improves Performance in First Quarter
05/16/2008 - Algoma Steel announces significant performance improvements for the first quarter of 2008, including a 6.2% increase in shipments and a 4.6% increase in sales vs. last year’s first quarter.
In a conference call with its lenders, Algoma Steel Inc. announced significant performance improvements for the first quarter of 2008.
In comparison to the year-ago first quarter, Algoma’s shipments increased 6.2% in the past quarter, sales increased by 4.6%, and EBITDA was $71.4 million, a $17.6-million increase from the same period last year and $22.5 million over the previous quarter.
Algoma also reported a net loss of $25.3 million, which the company said is primarily attributable to a $26.2-million non-cash foreign exchange loss on U.S.-dollar-denominated debt that must be reported for accounting purposes.
“We remain optimistic about Algoma’s overall financial performance throughout the course of this year,” said Armando Plastino, Chief Operating Officer. “We expect that the increased volumes will be sustainable over the long term, and the company’s demonstrated performance improvements of this quarter will continue.”
Algoma Steel Inc., a member of the Essar Group, is based in Sault Ste. Marie, Ont. As a fully integrated steel producer, Algoma’s revenues are derived primarily from the manufacture and sale of rolled steel products including hot and cold rolled sheet and plate.
