Essar Steel Algoma Releases Second Quarter Results

SAULT STE. MARIE, ON, Nov. 13, 2012 /PRNewswire/ – Essar Steel Algoma Inc.
reported an EBITDA loss of $15.1 million and a net loss of $88.4
million for the three month period ending September 30, 2012.  EBITDA
is a meaningful indicator of the Company’s profitability.

The loss for the three month period reflects the impact of lower selling
prices for the Company’s products, lower volumes and higher costs
compared to the three month period ending September 30, 2011.  Compared
to last quarter, selling prices decreased by 7.3%, shipments were down
15.0%, and costs increased 8.5%.  Shipments in the quarter were 548,110
tons, generating $410.9 million in revenue for the period.

Chief Executive Officer, Kalyan Ghosh commented on the results, “Though
soft steel markets led to weaker financial performance, there were a
number of significant accomplishments in the quarter.  Safety
performance remained strong, a new SAP Enterprise Resource System was
launched, and liquidity improved as a result of a new U.S. $350 million
term loan agreement.  These initiatives, combined with continued cost
reduction efforts bode well for improved performance in the next
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.