Algoma Central Corporation - Operating results to December 31, 2006 and 2005



    TORONTO, March 1 /CNW/ -

    
                         Algoma Central Corporation -
               Operating results to December 31, 2006 and 2005
             (in thousands of dollars except per share figures)

                                    Three Months Ended   Twelve Months Ended
                                        December 31           December 31
                                       2006       2005       2006       2005

    Revenue from continuing
     operations                    $163,620   $154,149   $548,552   $508,993

    Net earnings (loss):
      Continuing operations         $18,874    $14,258    $41,575    $30,856
      Discontinued operations          (194)       192        484        620
      Total                         $18,680    $14,450    $42,059    $31,476

    Earnings per share (loss)
      Continuing operations           $4.85      $3.66     $10.69      $7.93
      Discontinued operations         (0.05)      0.05       0.12       0.16
      Total                           $4.80      $3.71     $10.81      $8.09

    Dividends paid per common share:  $0.35      $0.25      $1.30      $1.00
    

    The Corporation is reporting earnings from continuing operations for the
three months ended December 31, 2006 of $18,874 compared to $14,258 for the
same period in 2005, and earnings from continuing operations for the twelve
months ended December 31, 2006 of $41,575 compared to $30,856 for the same
period in 2005.
    The increase in net earnings from continuing operations of $4,616 for the
three months ended December 31, 2006 when compared to the prior period was due
principally to a improvement in earnings of the domestic dry-bulk fleet
segment due mainly to increases in freight rates, improved recovery of higher
fuel costs and improved fall weather conditions. This increase was partially
offset by a reduction in the earnings of the ocean shipping segment due to
fewer operating days resulting from the scheduled dry-docking of one vessel,
and an increase in foreign exchange losses due primarily to the weakening of
the Canadian dollar relative to the U.S. dollar.
    For the twelve months ended December 31, 2006 when compared to the same
period in 2005, earnings from continuing operations increased by $10,719 over
the prior period. The increase was primarily due to the following:

    
    -   The product tanker segment earnings improved principally due to the
        addition of the Algosea and Amalienborg and reduced earnings for the
        twelve months ended December 31, 2005 due to costs associated with
        the wind-up of U.S. operations relating to the transfer of
        registration of a tanker vessel from U.S. to Canadian flag.

    -   The domestic dry-bulk segment earnings improved due mainly to
        increases in freight rates, improved recovery of higher fuel costs
        and improved fall weather conditions.

    -   The real estate segment earnings increased due partly to earnings
        from the new real estate property in Waterloo, Ontario and rental
        rate increases from lease renewals and tenant turnovers. On
        January 12, 2007 the Corporation entered into a contract for the
        construction of a new three story 45,000 square foot office building
        in St. Catharines, Ontario on land owned by the Corporation at an
        expected cost of approximately $6.0 million.

    -   Decrease in income tax expense of $3,157 due to the announcement by
        the Federal government concerning future corporate tax rate
        reductions.
    

    The above increases were partially offset with a reduction in earnings of
the ocean shipping segment due primarily to fewer operating days in 2006 due
to the scheduled dry-docking of three vessels.





For further information:

For further information: Tim S. Dool, President and Chief Executive
Officer, (905) 687-7888; Greg D. Wight, Executive Vice President and Chief
Financial Officer, (905) 687-7850


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