Essar Steel Algoma Reports 1st Quarter Results
08/14/2009 - Essar Steel Algoma reports a net loss of $143.0 million on sales of $248.3 million for the quarter ended June 30, 2009.
Essar Steel Algoma reported a net loss of $143.0 million on sales of $248.3 million for the quarter ended June 30, 2009. The company attributes the loss primarily to lower shipments and lower steel prices.
EBITDA recorded a $19.2 million loss for the quarter excluding exceptional charges of $10 million relating primarily to inventory write downs.
Sales of $248.3 million compares to sales of $760.6 million for the corresponding period in fiscal 2009. The company said the 67% decrease is a direct result of lower shipments and lower steel prices. Shipments were 398,921 tons, representing a 50.1% decrease vs. the same period in fiscal 2009.
“Our continued focus on cost containment with a prudent operating plan enabled us to minimize the loss in the first quarter,” said CEO Armando Plastino, commenting on the quarter.
“We successfully started the 70-MW cogeneration facility on June 13th, and we have seen improvement in demand and price for our products, which will enable us to reflect improved financial performance going forward.”
“We successfully started the 70-MW cogeneration facility on June 13th, and we have seen improvement in demand and price for our products, which will enable us to reflect improved financial performance going forward.”
Essar Steel Algoma, a member of the Essar Group, is based in Sault Ste. Marie, Ont. 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.
