Algoma Steel reports second quarter earnings

Algoma Steel reports second quarter earnings

Canadian steelmaker Algoma Steel Corp. announced second quarter net income fell 28 percent due to lower steel prices and higher iron ore costs. Net sales were $494.6 million Canadian (CA$) for the second quarter 2005, an increase over the CA$439.8 million seen for the same period in 2004. Year-to-date net sales were reported as CA$993.6 million, a 22 percent increase from same period in 2004. Net income for the second quarter was reported as CA$64.7 million, or CA$1.60 per diluted share, compared to CA$78 million, or CA$1.93 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was CA$153.8 million while year-to-date 2004 net income was CA$100.1 million. Denis Turcotte, president and CEO, said, "The senior management team and a Special Committee of the Board invested a significant amount of time in recent months to determine if a sale of the Company was the most effective way to maximize shareholder value. The Board of Directors concluded that, due to a variety of factors, a sale is not appropriate at this time. This decision allows us to proceed with a significant distribution to our shareholders and also facilitates the continued development of a longer-term strategy for the business and the maximization of returns from the existing assets." Algoma Steel. is an integrated steel producer 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.C