Algoma Central Corporation - Operating Results For the Three and Six Months Ended June 30, 2008 and 2007



    ALC-T

    TORONTO, Aug. 5 /CNW/ -

    
                         ALGOMA CENTRAL CORPORATION

                              Operating Results

          For the Three and Six Months Ended June 30, 2008 and 2007

               (In thousand of dollars except per share data)


                                  Three Months Ended        Six Months Ended
                                        June 30                  June 30
                                    2008        2007        2008        2007

    Revenue                     $196,969    $163,136    $265,676    $215,164

    Net earnings                $ 14,196    $ 16,522    $  5,925    $  4,786

    Earnings per share          $   3.65    $   4.25    $   1.52    $   1.23

    Dividends paid per
     common share               $   0.45    $   0.35    $   0.80    $   0.70

    The Corporation is reporting net earnings for the three months ended June
30, 2008 of $14,196 compared to $16,522 for the same period in 2007. The
decrease in the net earnings for the second quarter ended June 30, 2008 of
$2,326 when compared to the same prior year period was due primarily to the
following:

    -   Decrease in earnings of the Product Tankers segment due primarily to
        costs and out of service days associated with the planned regulatory
        dry-docking of the Amalienborg.

    -   Decrease in net foreign exchange gains of $3,572. In the second
        quarter of 2008, the Corporation incurred a net foreign exchange loss
        due mainly to the translation to Canadian dollars of Euro denominated
        short term cash deposits. In the second quarter of 2007 the
        Corporation had net foreign exchange gains on the translation of
        foreign-denominated net liabilities resulting from the strengthening
        of the Canadian dollar against the U.S. dollar.

    The above decreases in the earnings were partially offset primarily by the
following:

    -   Improved earnings of the Domestic Dry-Bulk segment as a result of
        higher rates.

    -   Improved earnings in Ocean Shipping due largely to the addition of
        the Honourable Henry Jackman on August 1, 2007, improved results of
        the CSL International commercial arrangement offset partially by the
        reduced earnings of the Ambassador and the Nelvana due to planned
        regulatory dry-dockings.

    For the six months ended June 30, 2008 net earnings were $5,925 compared
to $4,786 for the same period in the prior year. The increase in earnings of
$1,139 was a result of the following:

    -   Improved earnings for the Ocean Shipping segment due mainly to
        additional operating days as a result of the addition of the
        Honourable Henry Jackman on August 1, 2007, improved results of the
        CSL International commercial arrangement and earnings from a
        positioning cargo for a vessel going to a scheduled dry-docking.
        These improved results were partially offset with reduced earnings of
        the Ambassador and Nelvana due to planned regulatory dry-dockings.

    -   Improved earnings of the Domestic Dry-Bulk segment as a result of
        higher rates and additional operating days. These increases in
        earnings were partially offset with increased repair and maintenance
        costs associated with the increased winter works program of the
        Domestic Dry-Bulk segment.

    -   Improved earnings for the Real Estate segment due primarily to a gain
        realized on the sale of one of its light industrial properties in St.
        Catharines, Ontario.

    -   Increase in net foreign exchange gains of $3,015 resulting primarily
        from gains on the translation to Canadian dollars of Euro denominated
        short term cash deposits.
    

    The above increases in net earnings were partially offset with reduced
earnings of the Product Tankers segment due primarily to costs and out of
service days associated with the regulatory dry-docking of the Amalienborg.
    On July 2, 2008, the Board of Directors declared a dividend of $0.45 per
common share payable on September 2, 2008 to shareholders of record on August
19, 2008.





For further information:

For further information: Greg D. Wight, President and Chief Executive
Officer, (905) 687-7850; David G. Allen, Vice President Finance and Chief
Financial Officer, (905) 687-7897


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