Essar Steel Algoma Reports Second Quarter Results
11/13/2009 - Essar Steel Algoma reports a net loss of $122.8 million on sales of $388.3 million for the quarter ended September 30, 2009.
Essar Steel Algoma reported a net loss of $122.8 million on sales of $388.3 million for the quarter ending September 30, 2009.
The company said the loss was primarily attributable to lower steel prices and the impact of a foreign exchange loss of $71.9 million, which was a non-cash adjustment to net loss.
Financial performance was also affected by the bustle main failure on the company’s No. 7 blast furnace which occurred on September 24, 2009. The company said No. 7 blast furnace has now returned to normal operating levels.
EBITDA for the quarter was $19.7 million for the quarter compared to an EBITDA loss of $19.2 in the prior quarter, representing an improvement in financial performance of nearly $40 million.
“We have weathered these challenging economic conditions and we will continue to focus on positioning the company to take advantage of future improvements in the steel markets,” said Chief Executive Officer Armando Plastino, commenting on the quarter,
The company reported shipments of 656,063 tons, up 64.5% from the previous quarter of 398,921 tons. Sales were $388.3 million as compared to $248.3 million for the quarter ending June 30, 2009, representing an increase of 56.4%.
