Essar Steel Algoma Reports Strong 1st Quarter Results
08/15/2008 - Essar Steel Algoma reports net income of $89.0 million for the first quarter of fiscal 2008/09.
Essar Steel Algoma Inc. reported net income of $89.0 million for the first quarter of fiscal 2008/09.
The company said that results reflected increased shipments, higher steel prices and improved operating performance, moderated by a significant increase in raw material input prices.
In comparison to the previous quarter (which ended March 31st, 2008), shipments increased by 17% to 800,000 tons, which resulted in a 51.4% increase in sales. EBITDA was $204.3 million, an increase of $132.9 million over the previous quarter and an increase of $147.4 million over the corresponding quarter of 2007.
“This quarter’s results are a reflection of improved operating performance due to increased production at most of the facilities, in a strong market environment, which translated into record shipments,” said Armando Plastino, Chief Operating Officer, commenting on the quarter. “With the start up of No. 6 blast furnace and related capital improvements currently underway, we are on track to achieving our four-million ton goal.”
Essar Steel Algoma Inc., a member of the Essar Group, is based in Sault Ste. Marie, Ont. As a fully integrated steel producer, Algoma’s revenues are derived primarily from the manufacture and sale of rolled steel products, including hot- and cold-rolled sheet and plate.
