Low Prices Drive Down Essar Steel Algoma's First-Quarter Earnings
08/28/2015 - Essar Steel Algoma Inc. posted a CAD$28.9 million operating loss in the first quarter of its fiscal year on account of low prices, the Canadian steelmaker reported.
As a result, the company saw its earnings before interest, taxes, depreciation and amortization (EBITDA) fall nearly 55 percent to CAD$5.6 million in the quarter ended 30 June 2015. During the same period last year, the company recorded CAD$12.4 million in EBITDA.
Essar Steel said production remained strong during the quarter and currently iis running at 90 percent of capacity.
In other matters, the company said in a statement that it expects that the Canadian government will impose duties on imports of Russian and Indian steel plate. A ruling from the Canadian Border Services Agency is to come on 8 September 2015, the company said.
“This past year, dumped imports have wreaked havoc on North American markets, displacing domestic market share and placing downward pressure on price. Despite recovering demand, we are just now witnessing some price recovery, and with the prudent application of trade remedies we anticipate the return of a level playing field,” said Essar Steel Algoma president and CEO Kalyan Ghosh in a statement.
Essar Steel said production remained strong during the quarter and currently iis running at 90 percent of capacity.
In other matters, the company said in a statement that it expects that the Canadian government will impose duties on imports of Russian and Indian steel plate. A ruling from the Canadian Border Services Agency is to come on 8 September 2015, the company said.
“This past year, dumped imports have wreaked havoc on North American markets, displacing domestic market share and placing downward pressure on price. Despite recovering demand, we are just now witnessing some price recovery, and with the prudent application of trade remedies we anticipate the return of a level playing field,” said Essar Steel Algoma president and CEO Kalyan Ghosh in a statement.
