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



    TORONTO, Aug. 8 /CNW/ -

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

                                     Three Months Ended     Six Months Ended
                                           June 30               June 30
                                       2007       2006       2007       2006

    Revenue from continuing
     Operations:                   $163,136   $162,671   $215,164   $215,448

    Net earnings:
      Continuing operations         $16,522    $17,873     $4,786     $4,984
      Discontinued operations             0        725          0        725
      Total                         $16,522    $18,598     $4,786     $5,709

    Earnings per share:
      Continuing operations           $4.25      $4.59      $1.23      $1.28
      Discontinued operations          0.00       0.19       0.00       0.19
      Total                           $4.25      $4.78      $1.23      $1.47

    Dividends paid per common
     share:                           $0.35      $0.35      $0.70      $0.60
    

    The Corporation is reporting net earnings for the three months ended June
30, 2007 of $16,522 compared to net earnings of $18,598 for the same period in
2006, a decrease of $2,076. Included in the 2006 second quarter net earnings
was a decrease in income tax expense of $2,805 due to the announcement by the
Federal government concerning future corporate tax rate reductions. Excluding
this item in 2006, net earnings for the 2007 second quarter were better than
the comparable period by $729.
    Net earnings for the six months ended June 30, 2007 were $4,786 compared
to net earnings of $5,709 for the same period in 2006, a decrease of $923.
Excluding the decrease in income tax expense of $2,805 mentioned above, net
earnings for the six months ended June 30, 2007 were better than the
comparable period by $1,882.
    The increases in net earnings, excluding the income tax adjustment in
2006, of $729 for the three months ended June 30, 2007 and $1,882 for the six
months ended June 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 June 30 2007 compared to the corresponding
        period in 2006 due to regulatory planned dry-dockings.

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

    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 July 4, 2007 the Board of Directors declared a dividend of $0.35 per
common share payable on September 3, 2007 to shareholders of record on August
18, 2007.





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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Algoma Central Corporation

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