Algoma Central Corporation - Operating results to December 31, 2007 and 2006



    TORONTO, Feb. 29 /CNW/ -

    
                         ALGOMA CENTRAL CORPORATION
               Operating results to December 31, 2007 and 2006
             (in thousands of dollars except per share figures)


                                   Three Months Ended    Twelve Months Ended
                                       December 31           December 31
                                     2007       2006       2007       2006

    Revenues                       $185,134   $163,061   $580,546   $547,993

    Net earnings                    $26,077    $18,680    $52,443    $42,059

    Earnings per share                $6.70      $4.80     $13.48     $10.81

    Dividends paid per common share   $0.35      $0.35      $1.40      $1.30


    The Corporation is reporting net earnings for the three months ended
December 31, 2007 of $26,077 compared to $18,680 for the same period in 2006.
This increase in net earnings of $7,397 was due principally to the following:

    -   an improvement in earnings of the ocean shipping segment as a result
        of fewer out-of-service days in 2007 compared to 2006 due to reduced
        planned regulatory dry-dockings, the addition of the Honourable Henry
        Jackman which entered service on August 1, 2007 and strong earnings
        from a positioning cargo for a vessel going to a scheduled regulatory
        dry-docking in China.

    -   a reduction in income tax expense due to lower future corporate
        income tax rates.

    These increases were partially offset by a reduction in the earnings of
the domestic dry-bulk segment due to increased operating expenses and a
reduction in the earnings of the product tanker segment from fewer operating
days largely as a result of the sale of the Algonova earlier in the year.
    Net earnings for the twelve months ended December 31, 2007 were $52,443
compared to net earnings of $42,059 for the same period in 2006, an increase
of $10,384. This increase was primarily due to the following:

    -   Improved earnings for the ocean shipping segment due mainly to fewer
        out-of-service days in 2007 compared to 2006 due to reduced planned
        regulatory dry-dockings, the addition of the Honourable Henry Jackman
        which entered service on August 1, 2007 and strong earnings from
        positioning cargos for two vessels going to and one vessel returning
        from scheduled regulatory dry-dockings in China.

    -   Improved earnings for the domestic dry-bulk segment due mainly to
        improved revenue levels and fuel surcharge recoveries.

    -   A reduction in amortization expense due to changes in the remaining
        estimated lives of certain capital assets.

    -   Net foreign exchange gains due to the strengthening of the Canadian
        dollar against the U.S. dollar.

    -   Gains realized on the disposal of vessels and a gain from the
        proceeds relating to an insurance claim for a damaged engine on one
        of the domestic dry-bulk vessels.

    -   Decrease in income tax expense due to the announcement by the Federal
        government concerning future corporate income tax rate reductions.
    

    The above increases in net earnings were partially offset with decreased
operating earnings of the tanker fleet due primarily to fewer operating days
as a result of the sale of the Algonova in January 2007 and higher operating
expenses largely a result of a planned regulatory dry-docking in 2007.
    After 31 years with the Corporation, the last seven as President and
Chief Executive Officer, Tim Dool announced today that he will retire from
those positions after the Corporation's Annual Meeting on April 30, 2008.
    During Mr. Dool's seven year tenure as Chief Executive the Corporation's
revenue increased by 51%, capital assets grew by 23% and net earnings
increased by 60%. The Board is pleased to note that Mr. Dool will continue as
a Director of the Corporation and as a valued advisor to the Board and
Management.
    Upon the retirement of Mr. Dool, Greg Wight, Executive Vice President and
Chief Financial Officer, will be appointed President and Chief Executive
Officer. Mr. Wight joined the Corporation in 1980 and has been a Vice
President since 1996.





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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