Algoma Central Corporation - Operating Results For the Three and Six Months Ended June 30, 2009 and 2008



    
    ALC-T
    

    TORONTO, Aug. 5 /CNW/ -

    
                         ALGOMA CENTRAL CORPORATION

                              Operating Results
          For the Three and Six Months Ended June 30, 2009 and 2008

               (In thousand of dollars except per share data)

                                    Three Months Ended      Six Months Ended
                                           June 30               June 30
                                       2009       2008       2009       2008

    Revenue                       $ 141,199  $ 196,969  $ 201,634  $ 265,676

    Net earnings (loss)           $  13,509  $  14,196  $  (4,944) $   5,925

    Earnings (loss) per share     $    3.47  $    3.65  $   (1.27) $    1.52

    Dividends paid per
     common share                 $    0.45  $    0.35  $    0.90  $    0.80

    Second Quarter Results
    

    The Corporation is reporting net earnings for the three months ended June
30, 2009 of $13,509 compared to $14,196 for the same period in 2008.
    The decrease in net earnings for the quarter ended June 30, 2009 of $687
when compared to the same prior year period was due primarily to a decrease in
operating earnings net of income tax of the Domestic Dry-Bulk segment which
was partially offset with the improvements in operating earnings net of income
tax of the Product Tanker and Ocean Shipping segments and net foreign exchange
gains.
    The Domestic Dry-Bulk segment's operating earnings net of income tax
decreased by $7,847 due to significantly fewer operating days as a result of
the current economic conditions and higher spending on repairs and
maintenance.
    The Product Tankers segment operating earnings net of income tax
increased by $4,005 due to reduced repair and maintenance costs in 2009 when
compared to 2008 as a result of a regulatory dry-docking in 2008 and the
addition of the two new product tankers, the Algonova and AlgoCanada, in late
2008.
    The Ocean Shipping segment operating earnings net of income tax increased
by $1,581 due to lower earnings in the 2008 second quarter because of higher
costs for regulatory dry-dockings. There were two planned regulatory
dry-dockings in each period.
    Net foreign exchange gains on the translation of foreign denominated
assets and liabilities were higher in the second quarter of 2009 by $3,581 due
mainly to the translation of foreign-denominated net liabilities from the
strengthening of the Canadian dollar against the U.S. dollar. In the second
quarter of 2008 the Corporation incurred net foreign exchange losses due
mainly to the translation to Canadian dollars of Euro denominated short-term
cash deposits.

    Six-Month Results

    For the six months ended June 30, 2009, the Corporation is reporting a
net loss of $4,944 compared to net earnings of $5,925 for the same period in
the prior year. The decrease in earnings of $10,869 was largely a result of
the decrease in the operating earnings net of income tax of the Domestic
Dry-Bulk and Real Estate segments and a decrease in net foreign exchange
gains.
    The Domestic Dry-Bulk segment's operating loss net of income tax
increased from $10,965 in 2008 to $19,272 in 2009 due primarily to fewer
operating days and an increase in repair and maintenance costs.
    The Real Estate segment operating earnings net of income tax decreased
from $2,723 in 2008 to $2,095 in 2009 due primarily to a gain in 2008 on a
sale of a property and reduced earnings from the hotel operations.
    In 2008 to June 30, the net foreign exchange gains were $5,313 compared
to $1,862 for the similar period in 2009. The decrease of $3,451 is due
primarily to the 2008 gains on the translation to Canadian dollars of Euro
denominated short-term cash deposits due to the weakening of the Canadian
dollar.
    Partially offsetting the above decreases was an improvement in the
operating earnings net of income tax of the Product Tankers segment of $1,790
due primarily to the addition of the two new product tankers, the Algonova and
AlgoCanada, in late 2008, and reduced tax expense. Also partially offsetting
the above decreases were improved operating earnings net of income tax of the
Ocean Shipping segment due primarily to foreign exchange.
    On July 8, 2009, the Board of Directors declared a dividend of $0.45 per
common share payable on September 1, 2009 to shareholders of record on August
18, 2009.





For further information:

For further information: Greg D. Wight, F.C.A., 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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