Essar Steel Algoma Reports Fiscal 3rd Quarter Results
02/11/2011 - Essar Steel Algoma reported a net loss of $194.9 million on sales of $436.6 million for the quarter ended December 31, 2010.
Essar Steel Algoma reported a net loss of $194.9 million on sales of $436.6 million for the quarter ended December 31, 2010.
The third quarter net loss of $194.9 million compares to a net loss of $63.3 million for the year-ago third quarter.
The company also reported an EBITDA of negative $155.7 million, which compares to an EBITDA of $16.7 million for the comparable quarter in the prior year.
The change in results is primarily due to higher cost of sales per ton, which were impacted by the arbitration decision in the iron ore pricing dispute with Cleveland Cliffs, and partially offset by higher selling prices and increased shipments.
Shipments for the quarter were 629,501 tons, representing a 33.6% increase from the same period in the prior year. Sales for the quarter were $436.6 million.
The company confirmed its No. 7 Blast Furnace has been successfully restarted and the company expects to return to normal operations this week.
A member of the Essar Group, Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ont. 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.
