SAULT STE. MARIE, ON, Feb. 13, 2013 /CNW/ - Essar Steel Algoma Inc.
"ESAI" reported an EBITDA of $9.7 million and a net loss of $25.1
million for the three month period ending December 31, 2012. EBITDA is
a meaningful indicator of the Company's profitability.
The results for the three month period reflect the impact of lower
selling prices for the Company's products compared to the three month
period ending December 2011, offset by higher volumes and lower costs.
As compared to last quarter selling prices decreased by 5.8%, costs
decreased by 12.3% and shipments improved by 19.6%. Shipments in the
quarter were 655,609 tons, generating $457.1 million in revenue for the
The Company has restated and amended the previously reported condensed
interim consolidated financial statements for the three and six month
periods ended September 30, 2012 to reflect a change in the calculation
of depreciation expense given the reassessed remaining useful life of
its assets. The effect of the restatement is a $19 million reduction
in depreciation. The impact of this restatement has no effect on the
Company's revenue, EBITDA and cash position.
Chief Executive Officer, Kalyan Ghosh commented on the results, "Despite
lackluster steel markets, our commitment to safety and the continued
realization of our cost reduction strategies combined to generate
improved operating results for the quarter."
Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario. Revenues
are derived primarily from the manufacture and sale of rolled steel
products, including hot and cold rolled sheet and plate.
SOURCE: Essar Steel Algoma Inc.
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