Canadian Algoma Steel’s profitability still not promising
Canada's third largest integrated steel producer Algoma Steel Inc., has been struggling with adverse market conditions as well as hard intercorporate financial conditions since the completion of its second restructuring under CCAA (Company's Creditors Arrangement Act) on January 29, 2002. Besides, profitability of the company is expected to remain under pressure despite recent price hikes effected and strong demand forecast for the near future due to above mentioned conditions.
Algoma Steel reported $363 million loss in 2001, which includes its second restructuring period in part that started as of April 23, 2001. In February-December 2002 period, after it has completed its restructuring, the company recorded $42.5 million net income. The same figure was $19.7 in the first nine months of 2002, whereas it was reported to be $5.6 million in the same period this year.