Algoma Central Corporation - Operating Results For the Three Months Ended March 31, 2009 and 2008



    ALC-T

    TORONTO, May 7 /CNW/ -

    
                         ALGOMA CENTRAL CORPORATION

                              Operating Results

             For the Three Months Ended March 31, 2009 and 2008

               (In thousand of dollars except per share data)

                                                        Three Months Ended
                                                             March 31
                                                           2009      2008

    Revenue                                             $60,435   $68,707

    Net loss                                            $18,453   $ 8,271

    Loss per share                                      $  4.74   $  2.13

    Dividends paid per common share                     $  0.45   $  0.35
    

    The Corporation is reporting a net loss for the three months ended March
31, 2009 of $18,453 compared to a net loss of $8,271 for the same period in
2008. The increase in the net loss was due primarily to net foreign exchange
gains in the 2008 similar period and decreases in operating earnings net of
income tax of all our business units.
    In 2008, the Corporation reported net foreign exchange gains of $6,843 on
the translation of foreign denominated assets and liabilities and in 2009 we
are reporting a net foreign exchange loss of $189. The decrease of $7,032 is
due primarily to gains in 2008 on the translation to Canadian dollars of a
Euro denominated short-term cash deposit due to the weakening of the Canadian
dollar.
    The Domestic Dry-Bulk segment's operating loss net of income tax
increased from $39,239 to $41,587 due primarily to fewer operating days and an
increase in repair and maintenance costs.
    The Product Tanker segment operating earnings net of income tax decreased
from $2,415 to $200 mainly as a result of increased repair and maintenance
costs due to two dry-dockings in the first quarter of 2009 when compared to
none in the similar 2008 period and higher amortization expense due to the
addition of the Algonova and the AlgoCanada.
    The operating earnings net of income tax of the Ocean Shipping segment
for the three months ended March 31, 2009 were $3,885 compared to $4,933 for
the same period in 2008. The decrease resulted primarily from reduced results
of the CSL International commercial arrangement due to the North American
recession and an increase in re-positioning costs related to a planned
regulatory dry-docking.
    The Real Estate segment's operating earnings net of income tax decreased
from $1,540 to $1,110 due primarily to a gain realized on the sale of a
building in 2008.
    On May 7, 2009, the Board of Directors declared a dividend of $0.45 per
common share payable on June 1, 2009 to shareholders of record on May 15,
2009.





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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