Essar Steel Algoma Reports Positive Quarterly Results
11/10/2011 - Essar Steel Algoma reported a net income of $73.7 million on revenue of $555.3 million and shipments of 673,640 tons for the three-month period ending September 30, 2011.
Essar Steel Algoma reported a net income of $73.7 million on revenue of $555.3 million and shipments of 673,640 tons for the three-month period ending September 30, 2011. The company also reported second quarter EBITDA of $86.9 million.
Results represent the company’s second consecutive quarter of positive net income and its third consecutive quarter of positive EBITDA. Net income at $73.7 million compares to a net loss of $58.1 million for the year-ago second quarter, while net income for the first six months (through September 30, 2011) of $106.9 million compares to a net loss of $37.0 million for the comparable year-ago period.
The company said that results reflect the impact of higher selling prices for the company's products, higher shipment volumes and lower costs compared to the year-ago quarter. Steel revenue at $555.3 million was up 22.2% from the year-ago quarter as a result of improved pricing and volume. Cost per ton of steel products sold was reduced 3.1% compared to the period in the prior year.
"I would like to thank the entire Essar Steel Algoma team for their continued efforts in cost reduction and operational reliability which when combined with improved market conditions delivered solid financial performance in the quarter," said CEO Jim Hrusovsky commenting on the results.
Essar Steel Algoma Inc., based in Sault Ste. Marie, Ont., derives revenues primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet and plate.
