Algoma reports deep loss for Q3
Canadian Algoma Steel reported its sales for the third quarter, ended September 30, 2005, totaled Canadian $446.4 million, down from Canadian $535.7 million(CA$) earned in the third quarter of 2004 mainly due to lower steel prices
Net profit fell 75 percent from third quarter 2004 profit, dropping to CA$30.8 million (US$26 million), or $0.77 per diluted share, compared to a profit of CA$121.6 million (US$102.8 million), or CA$3.00 per diluted share, in the same period last year.
Year-to-date net income was CA$184.6 million (US$156.2 million), compared to a net income of CA$221.6 million (US$187.5 million) for the first nine months of last year.
President and CEO Denis Turcotte commented, “Despite lower steel prices as a result of a softening market, we were able to generate positive cash flow and net income in the quarter. In addition, we were able to return a significant amount of capital to our shareholders and are positioned to redeem the 11 percent Notes in January 2006.”
Steel prices are expected to rise in the fourth quarter, but increasing prices of raw materials and natural gas may offset higher sales figures.
Mr. Turcotte, commenting on the outlook for the fourth quarter, said “We will continue to focus on cost reduction and developing market opportunities in order to mitigate the effects of continued escalation to the price of raw materials and energy.”
Algoma Steel is based in Sault Ste. Marie, Ontario with sales offices in Burlington, Ontario and Calgary, Alberta. The company manufactures and sells hot and cold rolled sheet and
plate for the North American market.