Algoma Central Corporation - Operating results to September 30, 2007 and 2006



    TORONTO, Nov. 7 /CNW/ -

    
                         Algoma Central Corporation
               Operating results to September 30, 2007 and 2006
             (in thousands of dollars except per share figures)

                                 Three Months Ended       Nine Months Ended
                                    September 30            September 30
                                  2007        2006        2007        2006

    Revenue from continuing
     operations:               $ 180,248   $ 169,484   $ 395,412   $ 384,932

    Net earnings :
      Continuing operations    $  21,580   $  17,717   $  26,366   $  22,701
      Discontinued operations          0         (47)          0         678
      Total                    $  21,580   $  17,670   $  26,366   $  23,379

    Earnings per share:
      Continuing operations    $    5.55   $    4.56   $    6.78   $    5.84
      Discontinued operations       0.00       (0.02)       0.00        0.17
      Total                    $    5.55   $    4.54   $    6.78   $    6.01

    Dividends paid per
     common share:             $    0.35   $    0.35   $    1.05   $    0.95
    

    The Corporation is reporting net earnings for the three months ended
September 30, 2007 of $21,580 compared to net earnings of $17,670 for the same
period in 2006, an increase of $3,910.
    Net earnings for the nine months ended September 30, 2007 were $26,366
compared to net earnings of $23,379 for the same period in 2006, an increase
of $2,987. Included in the net earnings for the nine months ended
September 30, 2006 was a decrease in income tax expense of $2,805 due to the
2006 announcement by the Federal government concerning future corporate tax
rate reductions. Excluding this item in 2006, net earnings for the nine months
ended September 30, 2007 were better than the comparable period by $5,792.
    The increases in net earnings of $3,910 for the three months ended
September 30, 2007 and $5,792 (after the impact of the 2006 corporate tax rate
adjustment) for the nine months ended September 30, 2007 when compared to the
same prior year periods were due primarily to the following:

    
    -   Improved earnings for the ocean shipping segment due mainly to fewer
        out-of-service days to September 30, 2007 compared to the
        corresponding period in 2006 due to reduced regulatory planned dry-
        dockings, the addition of the Honourable Henry Jackman which entered
        service on August 1, 2007 and strong earnings from positioning cargos
        for a vessel going to and returning from a scheduled regulatory dry-
        docking 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.

    -   An increase in net foreign exchange gains due to the strengthening of
        the Canadian dollar against the U.S. dollar.

    -   Gain realized on the disposal of the Algonova and a gain from
        proceeds relating to an insurance claim for a damaged engine.

    The above increases in net earnings were partially offset with the
following:

    -   Decreased operating earnings of the tanker fleet due primarily to
        fewer operating days due to the sale of the Algonova in January 2007.

    -   The impact of the deferral of earnings on capital work performed by
        our ship repair business on certain vessels chartered to the Seaway
        Marine Transport partnership.
    

    On November 7, 2007 the Board of Directors declared a dividend of $0.35
per common share payable on December 3, 2007 to shareholders of record on
November 19, 2007.
    The Corporation, in conjunction with Upper Lakes Shipping Ltd., an
unrelated party, has entered into agreements with Chengxi Shipyard located in
Jiangyin, China to construct two maximum seaway size self-unloading forebodies
and to attach these new forebodies to the aft-ends of the Algobay and the
Algoport.
    The completed vessels are expected to be in service in December 2009 and
September 2010, respectively at an expected cost of approximately $125 million
with the Corporation's share amounting to $62.5 million. This expected total
cost includes cost estimates to modernize the aft-ends of both vessels and a
25% import duty currently payable on the imported forebodies.
    Upon delivery in December 2009 and September 2010, these vessels will be
bareboat chartered to Seaway Marine Transport, a partnership with Upper Lakes
Shipping Inc.





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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