In c8043 transmitted at 12:00e today, an error occurred at the end of
the last paragraph which should read "....on May 18, 2011" and not
".... on June 18, 2011". Corrected copy follows:
ALGOMA CENTRAL CORPORATION - Operating Results For the Three Months
Ended March 31, 2011
TORONTO, April 29 /CNW/ -
(Reported under International Financial Reporting Standrds)
(In thousand of dollars except per share data)
Three Months Ended
Loss per common share
Dividends paid per common share
The Corporation is reporting a net loss for the three months ended March
31, 2011 of $17,013 compared to a net loss of $17,202 for the same
period in 2010. The decrease in the net loss was due primarily to a
reversal recorded in the 2011 first quarter of an impairment charge
taken in prior years, partially offset by the adverse impact of a
non-cash mark-to-market adjustment recognizing the fair value of
certain foreign exchange forward contracts. The combined operating
results of the business units were essentially the same for both the
2011 and 2010 three month periods ended March 31.
The Domestic Dry-Bulk segment's operating loss net of income tax
increased from $20,107 to $23,127. The increase in the loss was due
primarily to costs incurred for the Algoma Spirit, Algoma Guardian and the Algoma Discovery which were added to the domestic dry-bulk fleet in 2010. These
vessels operated for the first quarter in 2010 in the ocean market and
were included in the results of the Ocean Shipping segment.
The Product Tanker segment operating earnings net of income tax
increased from $21 to $1,354 mainly as a result of more operating days
due to an increase in market demand.
The operating earnings net of income tax of the Ocean Shipping segment
for the three months ended March 31, 2011 were $2,924 compared to
$2,486 for the same period in 2010. The increase was mainly a result of
lower amortization and general and administrative expenses which were
partially offset with reduced earnings due to a planned regulatory
The Real Estate segment operating earnings net of income tax increased
from $523 to $859 due primarily to additional earnings realized from
the hotel in operation for the full quarter in 2011.
During the first quarter of 2011, the Corporation negotiated a
conditional conversion of a contract to construct a new product tanker
vessel to a laker self-unloader and entered into an agreement with the
shipyard to apply the installments paid to date on the product tanker
to fund installments due on a new lake freighter construction contract.
As a result of this conversion, the accumulated impairment provision
recorded in prior periods has been re-measured, resulting in a
reduction of the accumulated impairment provision of $5,066, which has
been disclosed in the statement of earnings for the first quarter of
2011 as a separate line.
Financial expense for the three months ended March 31, 2011 increased to
$4,786 from $827 in 2010 as a result of the impact of a non-cash
mark-to-market adjustment to recognize the fair value of certain
foreign exchange forward contracts relating to the construction of four
new maximum Seaway-sized dry-bulk lake freighters.
The net foreign exchange gains on the translation of foreign denominated
assets and liabilities were $652 compared to a gain of $3,387 in 2009.
The decrease was due to larger realized losses on the return of capital
from foreign subsidiaries and a reduction in the gains related to the
translation to Canadian dollars of the Corporation's foreign
denominated debt. Both of these decreases compared to last year are a
result of the strengthening Canadian dollar relative to the U.S.
On April 29, 2011, the Board of Directors declared a dividend of $0.45
per common share payable on June 1, 2011 to shareholders of record on
May 18, 2011.
SOURCE Algoma Central Corporation
For further information:
| Greg D. Wight, FCA |
President and Chief Executive Officer
| Peter D. Winkley, CA |
Vice President, Finance and Chief Financial Officer