Essar Steel Algoma Reports Positive EBITDA for the Three Month Period Ending June 30, 2012
SAULT STE. MARIE, ON, Aug. 13, 2012 /PRNewswire/ – Essar Steel Algoma reported
positive EBITDA of $54.6 million and a net loss of $7.2 million for the
three month period ending June 30, 2012 on shipments of 644,844 tons.
EBITDA is a meaningful indicator of the Company’s profitability.
The results for the quarter reflect the impact of lower selling prices
and higher costs compared to the three month period ending June 30,
2011. Compared to the same period of the prior year, shipments
increased 0.6%, and cost per ton of steel products sold increased
4.8%. Steel revenue was $511.8 million for the period.
The Company further reported that it is currently in discussions with
the lenders under the Company’s Extended Revolving Facility to extend
the Extended Revolving Facility beyond its current maturity date. The
Company is also in discussions with various other financial
institutions and third-party financing sources to obtain financing to
replace the Extended Revolving Credit Facility.
Chief Executive Officer, Jim Hrusovsky commented on the results, “We
continue to see the benefit of our cost reduction initiatives. Despite
difficult market conditions and the high cost of raw materials we
delivered a positive EBITDA for the first 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.