Essar Steel Algoma Reports Positive 4th Quarter EBITDA
02/13/2012 - Essar Steel Algoma reported positive EBITDA of $30.2 million and a net loss of $50.8 million on sales of $490.5 million for the three month period ending December 31, 2011.
Essar Steel Algoma reported positive EBITDA of $30.2 million and a net loss of $50.8 million on sales of $490.5 million for the three month period ending December 31, 2011. Shipments for the quarter were 635,308 tons.
The company said that results for the three-month period reflect the impact of higher selling prices for the company's products and lower costs compared to the three month period ending December 31, 2010. Compared to the year-ago fourth quarter, shipments were up 0.9%, and cost per ton of steel products sold was reduced by 0.9%. Steel revenue for the quarter was $490.5 million, attributed primarily to improved pricing.
"We have earned positive EBITDA in each of the last four quarters and continue to see an improvement in operating reliability,” said CEO Jim Hrusovsky, commenting on results. “I am pleased to recognize the safe and highly successful installation of an Individualized Oven Pressure Control System on our # 9 coke battery. This $20 million investment in leading edge technology is estimated to reduce emissions from the battery by more than 70%."
Essar Steel Algoma is based in Sault Ste. Marie, Ont. Revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet and plate.
