SAULT STE. MARIE, ON, Nov. 9, 2011 /CNW/ - Essar Steel Algoma posted its
second consecutive quarter of positive net income and its third
consecutive quarter of positive EBITDA. In the three month period
ending September 30, 2011, Essar Steel Algoma reported a net income of
$73.7 million and EBITDA of $86.9 million. EBITDA is a meaningful
indicator of the Company's profitability. Shipments for the period
were 673,640 tons, up 9.0% from the same period in the prior year.
The results for the three month period reflect the impact of higher
selling prices for the Company's products, higher shipment volumes and
lower costs compared to the three month period ending September 30,
2010. Steel revenue was $555.3 million for the period, up 22.2% from
the same period of the prior year as a result of improved pricing and
volume. Cost per ton of steel products sold was reduced 3.1% compared
to the period in the prior year.
Chief Executive Officer, Jim Hrusovsky commented on the results, "I
would like to thank the entire Essar Steel Algoma team for their
continued efforts in cost reduction and operational reliability which
when combined with improved market conditions delivered solid financial
performance in 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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Manager, Corporate Communications