SAULT STE. MARIE, Feb. 10 /CNW/ - Essar Steel Algoma reported a net loss
of $194.9 million for the quarter ended December 31, 2010. For the
comparable quarter ended December 31, 2009 the net loss was $63.3
million. The Company also reported an EBITDA of negative $155.7
million for the quarter compared to an EBITDA of $16.7 million for the
comparable quarter in the prior year. EBITDA is a meaningful indicator
of the Company's profitability. The change in results is primarily due
to higher cost of sales per ton, which were impacted by the arbitration
decision in the iron ore pricing dispute with Cleveland Cliffs, and
partially offset by higher selling prices and increased shipments.
Shipments for the quarter were 629,501 tons, representing a 33.6%
increase from the same period in the prior year. Sales for the quarter
were $436.6 million.
The Company confirmed its No. 7 Blast Furnace has been successfully
restarted and the Company expects to return to normal operations this
A member of the Essar Group, Essar Steel Algoma Inc. is based in Sault
Ste. Marie, Ontario. As a fully integrated steel producer, the Company
derives its revenues primarily from the manufacture and sale of hot and
cold rolled steel products including sheet and plate.
SOURCE Essar Steel Algoma Inc.
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