Essar Steel Algoma Closes Out Milestone Fiscal Year
07/30/2015 - Essar Steel Algoma Inc. returned to profitability in fiscal 2015, posting $194.4 million Canadian in earnings before interest, taxes, depreciation and amortization (EBITDA), the company reported.
In the previous fiscal year, which ended March 31, 2014, the company posted an EBITDA loss of $55.2 million. EBITDA is a non-GAAP measure of profitability and is used by management as an indicator of the operational health of the business.
The company said fiscal 2015 was a milestone year, marked by the successful completion of a comprehensive recapitalization and refinancing valued at $1.4 billion U.S. and by the return to profitability.
On the year, income from operations stood at $76.3 million, compared to a loss of $240.4 million in the previous fiscal year. Operationally, the business achieved a CDN $12 per ton reduction year over year in conversion costs while maintaining shipment volumes despite an onslaught of imports and recovering demand.
Essar Steel Algoma reported revenue for the year of CDN $1.98 billion, up 11.9 percent over fiscal 2014. Results reflect the impact of level shipment volumes of 2.398 million tons for the year and higher selling prices.
"Fiscal 2015 marked a turnaround for Essar Steel Algoma. Through the recently announced modernization and expansion program, we expect to offer a much broader range of advanced steel grades over the next 36 months as we introduce best available technology," said Essar Steel Algoma CEO Kalyan Ghosh.
"When combined with our return to profitability and low cost model, this investment will put us in a much stronger competitive position," he said.
Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario. As a fully integrated steel producer, the company derives its revenues primarily from the manufacture and sale of hot and cold rolled steel products including sheet and plate. Founded in 1901 as Algoma Steel, the company was acquired in June 2007 by Essar Steel Holdings Limited. Its products are sold to customers in the automotive, light manufacturing, construction, shipbuilding, energy, mining and steel distribution industries.
The company said fiscal 2015 was a milestone year, marked by the successful completion of a comprehensive recapitalization and refinancing valued at $1.4 billion U.S. and by the return to profitability.
On the year, income from operations stood at $76.3 million, compared to a loss of $240.4 million in the previous fiscal year. Operationally, the business achieved a CDN $12 per ton reduction year over year in conversion costs while maintaining shipment volumes despite an onslaught of imports and recovering demand.
Essar Steel Algoma reported revenue for the year of CDN $1.98 billion, up 11.9 percent over fiscal 2014. Results reflect the impact of level shipment volumes of 2.398 million tons for the year and higher selling prices.
"Fiscal 2015 marked a turnaround for Essar Steel Algoma. Through the recently announced modernization and expansion program, we expect to offer a much broader range of advanced steel grades over the next 36 months as we introduce best available technology," said Essar Steel Algoma CEO Kalyan Ghosh.
"When combined with our return to profitability and low cost model, this investment will put us in a much stronger competitive position," he said.
Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario. As a fully integrated steel producer, the company derives its revenues primarily from the manufacture and sale of hot and cold rolled steel products including sheet and plate. Founded in 1901 as Algoma Steel, the company was acquired in June 2007 by Essar Steel Holdings Limited. Its products are sold to customers in the automotive, light manufacturing, construction, shipbuilding, energy, mining and steel distribution industries.
